The Turkish Lira plunged nearly 1% on Monday, continuing its downward trend despite the appointment of former Wall Street banker Mehmed Simsek as the country's new finance minister.
The currency weakened to 21.12 against the US dollar, remaining close to the record low of 21.80 last week, after the election win of Recep Tayyip Erdoğan, who is entering his third decade of rule.
The lira had already been facing economic challenges due to Erdoğan's policy of keeping interest rates low since 2021. Investors had hoped that Simsek's appointment would result in a shift towards more conventional economic policies.
However, the currency has not responded positively, as there are concerns about inflation, unemployment, and political instability in the country. Despite Erdogan's promises of a more credible economic team, it remains to be seen whether Simsek can turn the situation around and restore investor confidence in the Turkish Lira.
