US dollar hits 2.8 Turkish lira mark amid coalition talks

Turkish lira declines to two-month-low against dollar after much anticipated coalition meeting of main parties ends sooner than expected, with early election on horizon

Photo by: Reuters
Photo by: Reuters

Negotiation talks concerning the formation of a coalition government between Turkey’s governing Justice and Development Party (AK Party) and the main opposition secularist Republican People’s Party (CHP) ended bitterly on Thursday, triggering a fall in the Turkish lira and stocks. 

After the meeting between Turkey’s prime minister and leader of the AK Party Ahmet Davutoglu and CHP leader Kemal Kilicdaroglu ended, the lira traded at 2.8 per dollar, falling 0.75 percent from earlier in the day. 

Davutoglu, who spoke to the press after the meeting, said that an offer had been made to form a “reform government with the CHP for a limited time in order to hold an early election. However, the CHP stated its desire to form a long-term coalition government.”

Davutoglu said that the CHP’s position is not tenable due to the “different demands of its voters.” 

In response to the news that there would be no formation of a coalition government, Turkey's main share index, the BIST 100, at first fell by more than 3 percent but ended the day down by 1.39 percent at 77.086 points.

TRTWorld and agencies