Τhe impact of Recep Tayyip Erdogan on the Turkish Lira.

Abstract

Turkey and its President Recep Tayyip Erdogan have been in the middle of attention for the past few years. Through the current event study, we examine the effect of the commentaries of President Erdogan to the Exchange rate of the Turkish Lira with the US Dollar. For the analysis, the intraday exchange rate of the Turkish Lira with the US Dollar was used. Also, 229 announcements of Erdogan were gathered for the analysis for the years 2004 to 2021. The announcements were separated into 3 categories: Inflation, Interest Rates, and other announcements related to Turkey’s economy including the Turkish Lira. Through the analysis, we conclude that generally, the announcements of President Erdogan affect the Exchange rate. The announcements related to Interest rates influence extensively the Exchange rate and specifically depreciate the Turkish Lira in terms of US Dollar per minute.