Turkey is coping with political and economic instability. Prime Minister Ahmet Davutoglu’s departure impacted the economy instantly, with markets and currency the first affected.
CCTV’s Michal Bardavid reports.
Turkish economy hit hard by political uncertaintyTurkey is coping with political and economic instability. Prime Minister Ahmet Davutoglu's departure impacted the economy instantly, with markets and currency the first affected. CCTV's Michal Bardavid reports.
On Thursday, Davutoglu declared he was leaving his post, out of necessity and not by choice. He tried to boost confidence and emphasized the country would still have stability. Yet, his words were not enough for many citizens across the country.
Prior to the announcement, rumors of the Prime Minister’s resignation already impacted the Turkish currency. By Friday, the Lira saw its worst weekly fall in almost 14 months. The Istanbul Stock Exchange witnessed intense volatility.
The ruling Justice and Development Party is expected to hold a congressional meeting on May 22nd and appoint a new leader. Many believe this could pave the way for early elections. Yet, some analysts are warning this would have negative financial effects.
Manal Omar of United Institute of Peace on Turkey’s volatility
CCTV America’s Susan Roberts interviewed Manal Omar, acting vice president for the Middle East and Africa Center at the United Institute of Peace about the instability in Turkey. Follow her on Twitter at: @ManalOmar