> Turkish President Tayyip Erdogan picks a fight with international investors and it is the lira currency that loses out. I'm David Dolan of Reuters in Istanbul, Turkey, where we're in the midst of a prolonged currency sell off. The lira currency is so far this year one of the worst performing emerging market currencies.
It's down some 17%. Investors were already worried about President Tayyip Erdogan's high influence over monetary policy. Now, Erdogan is a political populist and that extends to economics as well. He's a self-described enemy of interest rates. He wants to see borrowing costs lowered. He wants to make it cheaper for people to borrow money.
Particularly, he wants to make it cheaper for companies, construction firms to borrow money so they can build more and grow the economy that way. That translates into more jobs, and he hopes more votes. He’s particularly cognizant of that with elections looming June 24th. So he has repeatedly called on the central bank to lower borrowing costs.
But this time when he was in London, he was even more explicit. And he said that he would look to take more control of monetary policy once he inherits the executive presidency, once that goes into effect following the June 24th elections, and that has investors worried. So, Erdoğan is someone who never shies away from a fight.
He has picked fights with the leaders of western countries. He's picked fights with his political opponents. He's very vocal about it. But if you pick a fight with financial markets, the chances are, there will be repercussions and we're seeing those now in Turkey.