Turkish constitutional referendum held amid growing economic instability

Turkey's parliament voted in favour of 18 constitutional amendments designed to establish an executive presidential system of government. If approved in a referendum on 16 April, Turkey’s president will be granted additional power—raising concerns of greater interference in economic policy making. The amendments seek to abolish the office of the prime minister and significantly reduce parliament’s powers over the executive. The president will have the authority to pass presidential decrees, which will have the full force of law and not be subject to parliamentary or judicial review. The central bank left the main policy rate unchanged last month—despite sharp lira losses, high and climbing inflation, and the forfeiture of Turkey’s last investment grade rating. Without more aggressive actions, the currency remains vulnerable to a fresh slide—raising the risk of a currency and corporate debt crisis.