After Berat Albayrak’s Appointment as Minister of Finance, TRY Drops by 4%

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Turkish liras has lost value approximately by 4 percent

The announcement of the new cabinet by President Recep Tayyip Erdoğan has reactivated dollar against Turkish liras.

In the new cabinet Erdogan has named his son-in-law, Berat Albayrak as the Minister of Treasury and Finance, and entrusted him the economy.

Mehmet Şimsek was responsible for economy in all regards at the 65th Government.

Mehmet Şimşek

Mehmet Şimşek was one of the names shaping up the economy thanks to his tasks in ministries of State and Finance at the 60th government, again at the Ministry of Finance at the 61st and 62nd governments and finally as the vice prime minister during the 64th and 65th governments.

Besides not being at the cabinet, he was not proposed for candidacy during the June 24 Parliamentary Elections.

Naci Ağbal

In the new cabinet, Berat Albayrak will also have undertaken Naci Ağbal’s task who was the Minister of Finance at the 64th and 65th governments.

Ağbal was not nominated for candidacy for parliament either.

Nihat Zeybekçi

Once a Minister of Economy at the 65th Government, Nihat Zeybekçi is another name who was not nominated neither for the parliament nor the cabinet.

Someone unknown for the Ministry of Commerce

The Ministry of Commerce, another post related to economy in the new cabinet has been filled by Ruhsar Pekcan, very little known figure in politics.

CEO of the Industry and Commerce company Karon Mühendislik, Pekcan received electrical industry education.

Sharp reaction of dollar

Because of these modifications, at the first stage dollar has risen to 4.75 against Turkish lira, however, before the cabinet announcement it was on the 4.58 level while euro rose above the 5.57 level, which means that TRY has lost value approximately by 4 percent as soon the cabinet was announced.

Today in the morning dollar dropped a little and started the day as 4.70 then continued to be treated on the 4.65 level while the Euro-Turkish lira parity is on the 5.47 level.

Mehmet Şimşek, Naci Ağbal, Nihat Zeybekci and Lütfi Elvan who were in charge once at the previous economy administration were not taken into service in the new cabinet.

The reason behind the market caution is the uncertainty of the next process treatment in economic and financial politics.

Analysts think that the first messages of the economy staff will be determinant on the markets. (HK/HG/TK)

* Sources: Dünya newspaper, doviz.com, bloombergHT