Mehmet Şimşek

Türkiye's President Recep Tayyip Erdoğan said his new economic team's priority will be to cut inflation to single digits from its current level of around 40%.

"Now that the elections are over, our hand is stronger," Erdogan said in a speech to a group of Turkish exporters on June 17.

"We will cut inflation to single digits, that will be the priority of the new economy team."

Foreign investors and Türkiye watchers are keeping a close eye on the steps the new economic team will take in the period ahead.

There are expectations that portfolio inflows in to the country may increase depending on the messages sent out by those at the helm of the economy management.

Turkish President Tayyip Erdogan said his newly appointed Finance Minister Mehmet Simsek will take unspecified steps swiftly with the central bank, but that it was a mistake to suggest Erdogan had changed his own views on interest rates.

Alamy Photo

The Turkish Lira sank to a new low against the dollar yesterday, more than a week after the reelection of President Recep Tayyip Erdoğan.

The currency, which was propped up by the Central Bank before the presidential election, fell 6.7 percent to 23.16 liras per dollar in the afternoon trade.

Vice President Cevdet Yılmaz and the ministers of the new cabinet of President Recep Tayyip Erdoğan have taken oath at the parliament to officially start their job.

Yılmaz and the ministers came to the parliament to take oath on June 7 after taking over their jobs from their predecessors.

The Turkish lira, which fell today by more than five percent, hit a new historic low against the dollar ten days after the re-election of President Recep Tayyip Erdogan, reported AFP.

Turkey's lira plunged 7% to a record low on Wednesday in its biggest daily selloff since a historic 2021 crash, as the newly-elected government appeared to loosen stabilizing measures in its pivot to more orthodox policies.

The lira has come under pressure since President Tayyip Erdogan was re-elected on May 28. It stood at 22.98 against the dollar at 0735 GMT.

Turkish President Tayyip Erdogan said on Tuesday that Ankara is determined to resolve the high cost of living problems, adding that the latest data strengthens the government's hand in the fight against inflation.

The new cabinet formed after the May 14 and 28 polls will serve the entire nation with love, President Recep Tayyip Erdoğan has expressed, as the ministers and vice president convened for the first time in the new cabinet.

The appointment of Mehmet Simsek as Turkey's new treasury and finance minister at the weekend has sparked some investors' hopes of a return to monetary orthodoxy in a country beset by soaring inflation. Despite yet another fall in the lira on June 5, markets hold him in high regard.