Investors are getting out as Istanbul election rerun sparks outrage
The lira is down by another 0.7% today against the dollar as USD/TRY rises to above 6.12 in trading now, following concerns of political instability after Turkey's election board ruled to annul and rerun the Istanbul mayoral elections.
For some background, the 31 March elections result showed a narrow win for the opposition CHP party (running against Erdogan's AK party) but since then, Erdogan's challenges and calls to recount the result have caused the lira to tumble over the past few weeks.
And this culminated in the final ruling yesterday, which was *surprise, surprise* in favour of Erdogan's request. This has raised the prospects of renewed political turmoil in the country, which will likely lend itself to economic spillovers as well.
Istanbul will return to the polls again on 24 June and we all know what the results will be this time around. So-called democracy, eh? It's sad to see this happening.
