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The Turkish lira is one of the best performing CEEMEA currency at the start of the last week of trading in June, notes the research team at Rabobank.

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“While we hadn’t expected the market to react so enthusiastically, positive response can be attributed to diminishing political uncertainty as a result of Mr Erdogan’s victory in presidential election accompanied by his governing AKP securing a majority in the parliament with support from its coalition partner MHP.”

“We do not dismiss the importance of political stability for the market. But, real money investors may remain reluctant to deploy their capital due to prevailing concerns about President Erdogan’s unconventional views on economic policies and monetary policy.”