Erdogan's efforts to become the owner of the economy raise fears that Turkey will be pushed into a currency crisis

Measures by which the Turkish leader, Recep Tayyip, Erdogan strengthens his position as that first president with executive powers in the country the appointment of his son-in-law as finance minister and the claim of power to appoint the governor of the central bank fears that one of the largest emerging economies in the world will be pushed into a currency crisis.

The re-elected President Erdogan has called the son-in-law, Berat Albayrak, Minister of Finance and Treasury, the Turkish lira being one of the most volatile parts of the world, and strong and lasting inflation erodes Turkish purchasing power. Albayrak will have to face these problems. Inflation, more than 15%, is at its highest level in 14 years.

Turkey also has an oversized current account deficit and Turkish companies have accumulated substantial external debt for years with very low interest rates. In addition, the president, a declared enemy of high interest, claiming the power to elect the head of the central bank, takes control of monetary policy.

He promised that.

Yesterday, after the appointment of his new ministers by Erdogan as part of the adoption of new executive powers to the presidency, Turkey's financial markets were unstable.

The Turkish lira has returned to depreciation in recent years. The currency has lost 20% of its value since the beginning of the year against the dollar, according to Bloomberg. Erdogan's new ministers replace officials deemed too friendly with investors. Two-digit inflation, the refusal of the central bank to generate enough interest to cushion inflation, and Erdogan's attempts to erode the independence of Central bank makes investors avoid Turkish assets

Mehmet Simsek replaces former deputy prime minister and former banker of Merrill Lynch. He is one of the members of the government who has offered investors and markets the confidence, writes CNBC. Ex-Finance Minister Naci Agbal, also a figure of the Orthodox government, has found himself without a major role, which makes investors wonder if there is anyone in the administration to moderate the often unconventional economic tactics of Erdogan. Albayrak 's son – in – law, former energy minister, did not leave any good impressions to investors when he manipulated the energy. Erdogan was re-elected at the end of June with 52.5% of the vote.