Is Turkey going to a new early election after MHP leader sets the agenda once again?

Devlet BAHCELI, leader of MHP (National Movement Party) made a call yesterday for early deputy elections to be held on an earlier date than scheduled. BAHCELI proposed that both the presidential and parliamentary elections be held on Sunday 26 August 26, 2018.

In his speech to his deputies he said “Our offer is Turkish nation should go to the polls on with a spirit of new victory on 26 August which is the date of Malazgirt victory and the Great Offensive (Turkish Independence War) in history and teach the enemies of Turkey their lesson by using their votes for the election of both the president and the deputies. There’s no need to prolong it any further”.

This move seemed to have surprised the ruling Ak Parti group and leading executives at which point everybody turned their attention to ERDOGAN who is the ultimate decision authority, in reality.

The whole nation has now held breath and waiting for the decision to be announced after ERDOGAN – BAHCELI meeting scheduled for 13:00 hrs.

THE POSSIBLE IMPACT OF EARLY ELECTIONS ON ECONOMY

As far as the financial markets are concerned the risk of early elections has been added on top of the risks caused by the developments in Syria and increased US sanctions on Russia.

All markets have now been locked onto the meeting President ERDOGAN and MHP leader BAHCELI (small partner of alliance with ruling AK Parti) will have today. It is important to follow the explanations after the meeting which will enable experts to provide a healthier analysis and interpretation of early elections to come.

Uncertainty is likely to prevail on the markets to include Istanbul Stock Market until explanations about the early election anticipation gain legal ground and a certain date is announced. For this reason, experts suggest that it would be best to continue to monitor developments from outside for a while.

The same goes for Turkish Lira against foreign currencies situation and serious fluctuations could be expected until the situation regarding an early election is clarified. It goes without saying on the other hand, in case parties decide to hold the election at earlier date, the government will most likely implement an election economy package which may have an unforeseen impact on many economic data again.