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5/5/2016, 11:26 AM (Source: TeleTrader)
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Turkey markets trade low as AKP meeting starts

Turkish stocks declined on Thursday on the rumours of a possible political crisis in the country. The ruling Justice and Development Party (AKP) began its executive board meeting at 11:10 a.m. CET.

During trading on Wednesday the Turkish lira reached a 60-day low, but recovered today as the dollar lost 1.42% against the Turkish currency at 11:23 a.m. CET. Meanwhile, the Dow Jones Turkey Titans 20 Index fell almost 1.5% at 11:18 a.m. CET.

Turkish Prime Minister Ahmet Davutoglu is expected to resign from the position of head of government, when he holds a press conference in Ankara later today, following the party meeting.

Late last night, Davutoglu talked with President Recep Tayyip Erdogan in a meeting that lasted one hour and forty minutes, according to Turkish media.

Local media cited tensions between Davutoglu and Erdogan as the reason behind the resignation. Speculation on Davutoglu leaving the post of prime minister came about last week when the AKP took away Davutoglu’s powers to appoint regional leaders.

Since the President of Turkey is not allowed to be a partisan figure, Erdogan left the position of AKP leader after winning the election in 2014. Thereafter, he designated a close ally of his at the time, Davutoglu, to become the party leader and thus prime minister.

Some reports suggest Erdogan may be looking to expand his power and reform the current system where the president has mostly ceremonial duties and make Turkey a presidential republic.

Davutoglu was the crucial figure in Turkey’s talks with the European Union. The deal resulted in the return of a large number of refugees to Turkey and a visa liberalisation progamme for the country’s nationals. The agreement is seen as a step forward in Turkey EU accession talks.

 

Image: EPA / Rasit Aydogan

Baha Breaking News (BBN) / VP