Erdogan wins election: Turkish lira plunges to record low
In the last five years, the lira has crashed by about 80 percent

The re-election of Recep Tayyip Erdogan as Turkish president has again had a negative impact on the Turkish currency. The value of the lira fell to a historic low against the US dollar.
After Erdogan's election victory, the Turkish lira suffered another blow and lost significant value, reaching a record low. At the same time, the dollar rose 0.6 percent to reach an all-time high of 20.06 lira. Even before the runoff election, the lira had suffered a sharp drop in value.
Erdogan's victory over his challenger Kemal Kilicdaroglu means his third term as president. "Erdogan's victory offers no comfort to foreign investors," said Hasnain Malik, a manager at analyst firm Tellimer. "Only the most optimistic would hope that he now feels politically secure enough to return to orthodox economic policies."
Turkey is in crisis and struggling with high inflation, which at times exceeded 85 percent last year. One of the causes is believed to be that the central bank did not raise the key interest rate in line with economic doctrines, but lowered it at Erdogan's request.
The Turkish lira has already lost significant value as a result of Erdogan's economic and monetary policies and has fallen by over six percent against the dollar since the beginning of the year. Over the past five years, the lira has crashed by about 80 percent.
Uncertainty about Turkey's economic future and continued policies of low interest rates despite high inflation continue to weigh on the Turkish currency. Investors and analysts are skeptical that Erdogan will pursue a more orthodox economic policy in his third term to regain the confidence of foreign investors.
Experts warn of the long-term impact of the weak lira on the Turkish economy. High inflation, currency depreciation and political uncertainty could lead to a further worsening of the country's economic problems.
The next few months will be crucial to watch how the Turkish economy and currency evolve. The Turkish government faces significant challenges in regaining investor confidence and addressing the country's economic problems.
