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Currency crises in Turkey: Why is it happening and what is next?

Meltem Ä°nce Yenilmez

The tail end of the year 2000 saw Turkey suffer a banking crisis which then caused a significant amount of capital flight and a recession that severely affected the economy. Turkey was able to agree to the terms set by the International Monetary Fund for a loan of 19 billion dollars. The loan required Turkey restructure and overhaul its financial system, in addition to removing economic barriers and opening its economy to the world. The coalition government which was in power at that time, started to implement these structural transformations, however, the economic crisis fashioned a way for the Islamist Justice and Development Party, known by its AKP acronym and Recep Tayyip Erdogan, both of which had resided in the political background of the Turkish secular republic.