Turkey’s national currency found itself at an ‘all-time low’ after the parliamentary elections that took place on Sunday, June 7 – Bloomberg Business writes.
President Recep Tayyip Erdogan’s ruling party Justice and Development AK lost majority in the Turkish Parliament, a precedent that has not taken place in the country since 2002.
As a result, the Turkish lira fell by 5,2%, while the country’s benchmark stock index fell to its two-year minimum, Bloomberg Business reports.
The ruling Justice and Development Party generated 40,9% of the votes, which amounts to 258 seats in the Parliament. Erdogan’s party needed to get 18 more seats in the Parliament to be able to establish the President’s desirable one-party rule in the country.
The pro-Kurdistan leftist People’s and Democracy party passed the 10% threshold required to enter the country’s Parliament. Erdogan’s party’s loss of majority gives basis for future conflicts in Turkey’s Parliament, since none of the opposing parties agree to form a coalition.
“The current hung parliament will probably be viewed by the market as the worst outcome of the June 7 elections, and probably hit lira assets for some time to come,” Sertan Kargin, leading economist at Istanbul-based investment company Eczacibasi Securities told Bloomberg.