On June 24 Turks will vote in probably the most important elections in Turkey’s modern history as it will mark the beginning of a new political system based on the executive presidency, according to Piotr Matys, EM FX Strategist at Rabobank. Key Quotes “The outcome will have profound implications for Turkish financial markets and the real economy.” “While Mr Erdogan is favourite to win, he may have to wait until the second round (on July 8th if required) to achieve his political goal of becoming the president with executive powers. For his presidency to be effective, the governing AKP must secure a majority in the parliament.” “It is difficult to predict how the lira and local assets may react. Erdogan’s victory accompanied by a strong mandate obtained by his AKP will be interpreted by some investors as a source of political stability.” “Volatility is likely to rise after the elections, but once the dust settles the lira should stabilise and may even trim its substantial losses should pragmatism prevail (at least in the first half of Mr Erdogan’s presidency).” “In our view the incentive to maintain robust growth at all costs should weaken if the AKP and Erdogan win. Allowing the economy to slow down would lead to lower inflation and a narrower C/A gap which would ease concerns about Turkey’s reliance on volatile capital inflows.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next China and the US to restart trade talks? – AmpGFX FX Street 5 years On June 24 Turks will vote in probably the most important elections in Turkey's modern history as it will mark the beginning of a new political system based on the executive presidency, according to Piotr Matys, EM FX Strategist at Rabobank. Key Quotes "The outcome will have profound implications for Turkish financial markets and the real economy." "While Mr Erdogan is favourite to win, he may have to wait until the second round (on July 8th if required) to achieve his political goal of becoming the president with executive powers. For his presidency to be effective, the governing AKP must… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.