- Following the intense run-off election, the Turkish currency experienced a notable decline, with the exchange rate reaching 20.01 Turkish lira to one United States dollar on Monday.
- Turkish stocks experienced gains as the BIST-100 index rose by 3.5%, and the banking index increased by more than 1%. In recent years, fewer foreign asset managers have held Turkish stocks, and the market is mainly driven by local investors.
Why it matters
As an emerging market, developments in Turkey can have implications for global financial markets. Given the interconnectedness of the global economy, factors such as currency fluctuations or shifts in investor sentiment towards emerging markets can have spill-over effects on international financial systems.
