Turkish President Erdogan has began to exercise his new “attributes”, recently provided by an ever more authoritarian political system, in relation to the monetary policy of the central bank by affirming informally that interest rates will be lowered. This weakened the Turkish Lira from 4.66/$ to 4.85/$ (although it layered recovered to 4.82/$). This had a negative impact on the share price of BBVA, which holds 49.85% in the Turkish bank Garantí.
Erdogan’s new presidential system
Wolfango Piccoli via Macropolis | As both the Justice and Development Party (AKP) and President Recep Tayyip Erdogan are likely to win any upcoming elections, the approved constitutional changes will institutionalizs a populist one-man system equipped with vast additional powers. These will be usurped from other institutions without introducing the checks and balances required to safeguard against a further authoritarian turn.