Why Turkey’s currency is crashing after Erdogan got reelected

A man carries goods in a street market at Eminonu commercial area in Istanbul, Wednesday. [AP]

Turkish President Recep Tayyip Erdogan won reelection last month despite a battered economy and a cost-of-living crisis that experts say are exacerbated by his unconventional economic policies.

The longtime leader appointed an internationally respected former banker as finance and treasury minister and on Friday named a former co-CEO of a US-based bank as head of the central bank.

But lingering uncertainty over Erdogan's economic direction and an apparent move to loosen government controls of foreign currency exchanges have led Turkey's currency to plunge to record lows against the US dollar this week.

The Turkish lira has now weakened by around 20% against the dollar since the start of the year. It has raised fears of even higher prices for people already struggling to afford basics like housing and food amid high inflation.

"I am anxious. I am unhappy....

Continue reading on: