Concerns over political instability have seen the Turkish Lira further weakening against the US Dollar as it lost 1.2 percent of its value and was at 6.1622 against the US Dollar at 14:30 GMT on Tuesday.
The concerns come after Turkey’s Supreme Election Board (YSK) ruled for the re-run of the Istanbul mayoral election.
After a five-hour meeting, YSK announced new Istanbul metropolitan mayoral elections will be held on June 23, and immediate street protests started in Istanbul against the government of President Recep Tayyip Erdogan.
The ruling and the immediate protests saw investors negatively react to the decision. The unhappiness against the YSK’s ruling pushed U.S. dollar as high as 6.1976 lira in early trading on Tuesday.
Investing.com reported that the court’s decision caused the Lira to be the worst performing currency of all G-20 countries, except for Argentina’s Peso.
“Turkey was one of the 5-10 rising market economies that were nominated for a top league with income per capita of 12,395 dollars, six years ago in Turkey. Today Turkey is trying to stay in the cluster with a 9,632 per capita income. If the rule of law is no more, the economy will collapse,” said Turkey’s well-respected economist, Dr. Mahfi Egilmez through a tweet.
Many world media houses reported that YSK’s ruling shows how Turkey has no democracy.
“Erdogan does not accept defeat and goes against the will of the people. AKP pressured YSK to re-run local elections in Istanbul. This ends the credibility of a democratic transition of power through elections in Turkey,” a Reuters report quoted European Parliament’s Turkey rapporteur, Kati Piri’s tweet.
“A second defeat would shatter Erdogan’s armor of invincibility, rendering him vulnerable to attacks by the aforementioned intra-party rebels. The president is probably paying too dear a price to keep Istanbul, which he may end up losing again,” said Atilla Yesilada of Global Source Partners, VOA news mentioned.
Erdogan tirelessly campaigned for the local election which was held on March 31 and said on several occasions “winning Istanbul election is the matter of survival.” The President started his political carrier as Istanbul’s mayor and his party has controlled the city for the past 25 years.
The Turkish Lira has since last August lost 40 percent of its values and has fallen more than 14% since the start of the year, as Turkish courts resisted to release U.S. Pastor Andrew Brunson and Ankara has tensions with Washington over the S-400 Russian missile system and other disagreements such as U.S. sanctions on Iranian oil exports.