Öykü Altuntaş / Istanbul, Nov 3 () – The dollar that has declined under 2.80 liras following the Nov. 1 snap election results securing the one-party rule of the Justice and Development Party (AKP) began to rise after the statements made by government pointing to the “ambitions for presidency” in the country. The stock exchange having risen by more than 5 percent with the wave of optimism also started to fall.
Dollar has opened the new week with 2.8479 liras after the elections and declined to 2.7623 liras, the level it has seen in July. Accordingly euro has fallen rapidly to 3.1192 from 3.1535 that it has opened the week, showing a continuous fall. Borsa Istanbul Index opened with an upsurge by 5.35 percent to 83,653 points from 79,409 point level that it has closed on Friday, closing with a rise to 83,901 points, on Nov. 2.
However, this positive climate was intervened by the statements defining “presidential system” an indispensable topic made by the government officials, as the markets were affected negatively by the claims.
Deputy Prime Minister Yalçın Akdoğan has said the presidential system was one of the issues that the government would not give up on a live interview with NTV television, while other officials have approved the claims, which deflected the course of dollar in the markets.
While the dollar rose to 2.8461 liras and euro rose to 3.1288 liras due to expectations that presidency debates would badly affect the political stability and shift the agenda from economy to politics, the daily loss of the stock market reached 1.0 percent.
Fitch: Turkey completes electoral cycle; political risks persist
The outcome of Turkey's general election on Sunday, which saw the Justice and Development Party (AKP) regain its parliamentary majority, follows a period of heightened political uncertainty, international credit rating company Fitch Ratings has said.
The report of Fitch entitled “Turkey completes electoral cycle; political risks persist” has stressed
"The implications for Turkey's sovereign credit profile and rating will depend on whether the result produces a more stable and predictable political environment that is conducive to structural reform and economic rebalancing" it has said in its report on the results of Turkey's general election.
Political tension would remain high if Erdogan resumed his efforts to extend the power of the presidency, the statement has added.
"Reduced uncertainty over elections and the composition of the government does not necessarily translate into reduced political risk. Domestic political tension will remain high if Recep Tayyip Erdogan resumes his efforts to extend the power of the presidency. The peace process with the Kurdistan Workers' Party (PKK) has broken down, and it is uncertain whether it can resume post-elections, despite the People's Democratic Party (HDP) again securing enough votes for parliamentary representation. Together with spill-overs from regional instability, this has resulted in escalating violence in Turkey since June" has stated Fitch Ratings in the report.