LONDON
Some senior economic analysts say Prime Minister Recep Tayyip Erdogan’s nomination for the presidential election in August is a positive factor, which increases the stability and predictability of the economic environment in Turkey.
The AK Party, which has governed Turkey for the last 12 years, nominated Erdogan on Tuesday as their candidate in the presidential race, which will mark the first time in the history of the Turkish republic that the public will directly elect the president.
Speaking to Anadolu Agency, Timothy Ash, Head of Emerging Markets Research at Standard Bank, said that markets were expecting Erdogan to declare his candidacy, adding that analysts think Erdogan's declaration has made the economic environment more predictable.
”Opinion polls suggest that Erdogan will win, possibly even in the first round. Over the short term, the markets appreciate stability, so no change at the top will be appreciated - the lira rallied following the announcement today,” Ash said.
Christian Maggio, Senior Emerging Markets Strategist at TD Securities, said that the decision was widely welcomed by markets.
“The market was positioned for this outcome and I believe there should be no surprise in this respect,” Maggio said.
Following the announcement, stock markets and foreign currency exchanges hovered in a narrow band, suggesting the nomination of Erdogan was widely expected.
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