Turkish Presidency: Lira at record low not because of state of emergency, but seasonal fluctuation

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Turkish Presidency spokesman İbrahim Kalın said a fall in the value of the Turkish lira, which slid to a record low after losing 0.65 percent against the US dollar this week, is not due to the state of emergency declared following a failed military coup on July 15, but rather is a result of seasonal fluctuation in international currencies.

The Turkish lira lost 0.65 percent against dollar after the government signaled it would revive plans to push through an executive presidential system.

Kalın told reporters during a press conference on Thursday that the state of emergency has not had a negative effect on the Turkish economy. “There might be reasons [according to some people] for the drop in the lira, such as Moody’s downgrading of Turkey’s sovereign credit rating and the extension of the state of emergency for another three months, but we don’t think those things have had a negative effect on our economy,” he said.

Speaking to Reuters, Roxana Hulea, an emerging markets strategist at Société Générale, said, “The return of the risk that [President Recep Tayyip] Erdoğan is actually very much focused on his agenda of pursuing the executive presidency … is a negative.” She added that this compounded concerns about democratic values in Turkey.

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