Recep Tayyip Erdogan’s victory in the Turkish presidential election has pushed the national currency to new all-time lows. The Turkish lira was trading on Monday just above 20 units per dollar, compared to 19.97 lira last Friday. In the case of the euro, it was exchanged for 21.6 liras, slightly above the previous day.

The bleeding continues. In the last five years the currency has lost close to 80% of its value against the major international currencies. With soaring inflation, one of the highest on the planet, Erdogan has maintained a monetary policy marked by reduced rates, stating that this would lower prices, a theory contrary to that of most economists. According to Morgan Stanley, it could fall another 29% until the end of the year if the president does not change course.

“A victory for Erdogan offers no consolation for any foreign investor,” Hasnain Malik, a strategist at Tellimer, said in statements collected by Bloomberg. “With very high inflation, very low interest rates and no net foreign reserves, a painful crisis affecting all assets could be on the way,” he adds.

Erdogan achieved victory this Sunday in the most closely contested presidential elections since he first took office in 2014. He did so breaking the trend after two editions in which he had achieved direct victory by collecting more than 50% of the votes in the first lap.

In his victory celebration speech, he promised to reduce inflation, which is around 45%, as his main objective, something analysts are wary of. The president reviewed that his policy to deal with this problem has been to gradually reduce interest rates. The price of money is currently at 8.5% in the country.

“With the continuation of the previous policies, the lira will continue to lose value,” economist Mustafa Sonmez told Efe. The exchange rate against the dollar, which has registered a gradual but slow and smooth decline since last fall, remains artificially stable through intervention by the Central Bank, the sale of foreign currency and various mechanisms outside the market.

Thus, for about a month now, the official exchange rate of the Central Bank no longer corresponds to that offered by private exchangers, and which now appears even on the pages of financial consultations as “exchange of the Grand Bazaar”, alluding to the historic business center from istanbul