Fitch draws attention to post-election currency risk

Fitch Ratings EMEA Senior Director Erich Arispe stated that the first item on the agenda of the government that will come after the elections in Turkey will be foreign exchange market risks. As the elections to be held on May 14 in Turkey approach, foreign institutions continue their analyses regarding the post-election period. Foreign institution analyses regarding the post-election period particularly emphasize exchange rate risk. Credit rating agency Fitch also made comments in this direction. Speaking at the webinar, Fitch Ratings EMEA Senior Director Erich Arispe said that the first task of the government that will come to power after the elections in Turkey will be to manage foreign exchange market risks. According to Bloomberg, Arispe emphasized that banks have become the dominant player in providing financing to the government. Arispe said that the main weakness affecting macro performance is the implemented policy set and that this creates distortions. Fitch Ratings Turkey estimates the 2023 current account deficit/GDP ratio as 4.3 percent.