The Turkish currency fell 0.3% to 20.03 per dollar, close to a record low
It is reported by Bloomberg.
"Erdogan's victory did not please any foreign investor. With high inflation, very low interest rates and a lack of net foreign exchange reserves, a painful crisis can ensue. It will affect all assets," said Hasnain Malik, a strategist at Tellimer in Dubai.
Experts predict further weakness of the lira if Erdogan sticks to his policy of keeping interest rates low. Wells Fargo & Co expects the rate to reach 23 lira per dollar by the end of the quarter.
Turkey's central bank has spent nearly $200 billion over the past 1.5 years to support the lira. Net foreign exchange reserves turned negative, and inflation soared to 80% last year before falling to 44% in April.
The first signs of a review of current policy are likely to be appointments to key economic posts, including the finance and treasury departments, as well as the central bank. Two weeks ago, all current ministers received seats in parliament that they would have to refuse if they were reappointed to the cabinet.
What is known about the presidential election in Turkey
The current President of Turkey Recep Tayyip Erdogan won the second round of elections. The Central Election Commission counted 99.74% of the ballots. Erdogan won 52.14% of the vote, and his opponent, opposition leader Kemal Kilicdaroglu, won 47.86% of the vote.
During a speech to his supporters, Erdogan said that the results of the second round of elections confirmed that no one can encroach on Turkey's achievements.
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