Can the Turkish economy still be saved under Erdogan?

Ankara The announcement sounds big: Recep Tayyip Erdogan promises a team “of international credibility” to rescue Turkey’s economy. After the president’s re-election on Sunday, she is facing an uncertain future. The Turkish lira has fallen to a record low since the weekend. One US dollar cost 20.41 lira on Tuesday afternoon (local time). Since the evening of the election, the exchange rate has been above 20 lira per dollar almost continuously and has thus broken through an important mark.

“Turkey’s economy continues to be under pressure on the lira and the country’s balance of payments after President Erdogan’s election victory,” says Thomas Gillet of Scope Ratings. The Turkey experts at UBS also assume that the lira will depreciate more in the coming months: “Holding the lira is a burden on the economy and appears to be increasingly unsustainable given the country’s depleted foreign exchange reserves.”