This Q&A evaluates the initial impacts of the failed coup attempt of July 15 in Turkey and discusses its implications for the country’s economic prospects.
1. How did the markets react?
On the weekend immediately following the coup attempt, Turkey’s government and relevant institutions promptly announced a strong package of preemptive measures and assured that financial stability would be maintained, whatever it took. In addition, teleconferences held by the government with several international financial institutions helped further ameliorate confidence. More importantly, once the new week began, regular functioning of the financial system was achieved effectively. Hence, as acknowledged and appreciated by the IMF as well, the quick-witted efforts of officials during the chaotic weekend softened the potentially sharp moves in the economy.
[The New Turkey, July 29, 2016]