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Turkish stock market drops as government under pressure to call early elections

Turkish stock market drops as government under pressure to call early elections

The Turkish stock market dropped nearly 6 percent Monday as the Islamic-rooted government came under strong pressure from secular circles to declare early general elections.
The benchmark index, the IMKB-100, was down 6.3 percent at 43,940.04 points by afternoon, after opening down 7.99 percent.
The lira also slid against foreign currencies and was being traded at 1.36 against the U.S. dollar on Monday, compared to Friday's 1.33 and 1.38 earlier in the day. The interests on bonds rose as high as 19.31 percent from Friday's 18.47, but stood around 19.10 by afternoon.
Deputy Prime Minister Abdullatif Sener said the government was cautiously following market reactions, adding that there was confidence the Turkish economy both at home and abroad, local media reported.
Sener also said his ruling party has made no decision yet on possible early general elections.
Prime Minister Recep Tayyip Erdogan's government on Friday faced the boycott of opposition parties in presidential elections and a stern warning from the powerful military, which accused the government of tolerating or encouraging radical Islamic circles.
At least 700,000 protesters marched in Istanbul on Sunday, demanding the resignation of the government and the country's influential association of Turkish industrialists and businessmen, TUSIAD, urged the government to declare immediate early general elections.
The market reaction was expected, and analysts say the markets will speedily recover if political tensions ease or the government decides to go to early polls.
Turkey has been steadily recovering from a deep financial crisis in 2001 and has carried out solid financial reforms, especially strengthening the ailing banking sector.
The country has huge foreign debt but it has been able to lure foreign investors by maintaining a strict economic reform program, backed by the International Monetary Fund, and other political reforms needed to join the European Union.


Updated : 2021-04-13 23:02 GMT+08:00