The Turkish Lira is facing renewed pressure as political instability intensifies. Heightened uncertainty surrounding the upcoming presidential elections is fueling concerns among investors.

Political Uncertainty Weighs on Lira

The primary driver behind the Lira’s weakness is the escalating political tension. The prospect of a hung parliament or a weak coalition government following the elections is unnerving markets.

Factors Contributing to Lira’s Decline:

• Uncertainty surrounding the presidential election outcome.
• Fears of government gridlock and policy paralysis.
• Increased risk aversion among international investors.
• Concerns over the central bank’s independence.

Analysts suggest that the Lira’s depreciation could further exacerbate inflationary pressures in the Turkish economy. The central bank may be forced to intervene to stabilize the currency, but its effectiveness will depend on the broader political climate.

The situation remains fluid, and the Lira’s performance will likely be closely tied to political developments in the coming weeks.