The absence of political uncertainty is helping to give the lira some reprieve

The lira is now up by more than 3% against the dollar on the day, set for its biggest advance against the greenback since 2015. This comes after Erdogan won the latest round of elections and so far the market is taking in the result as positive news - with political continuity and a stable government favoured over a change in regime.

But the relief here may be one that is short-lived. Remember, Erdogan is still very much against the central bank raising rates and prefers to cut them instead. So far, he has done well to refrain from any comments relating to monetary policy - a move that hurt his bid several weeks back - and that is also helping to add further calm for the lira currently.

However, given time I expect Erdogan to eventually touch on interest rates again and the euphoria here will eventually face a harsh reality that Turkey is still under the clasps of an unconventional monetary policy.