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Turkey economy in the spotlight as election nears

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Turkey economy in the spotlight as election nears
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As Turks prepare to head to the polls on Sunday (7 June), they do so knowing that surveys suggest it will be the tightest election in decades

Whatever the result of the election, the Turkish lira – one of the worst performing major currencies – is expected to continue to slide.

Economist Arda Tunca told Euronews: “Will the dollar to lira exchange rate get higher than now? Yes definitely, it will happen, based on what is happening globally.

“But there is also an additional risk – the possibility of an economic administration that fails to gain the confidence of the financial markets. That would further deteriorate the position of the Turkish lira.”

A conclusive victory for President Recep Tayyip Erdogan’s AK party would allay some investor fears of instability, but also provokes concern.

Erdogan has been criticised for refusing to allow the Turkish central bank to raise rates to try to stem the lira’s decline.