With snap presidential and parliamentary polls only a month away, Turkey is grappling with currency turmoil that has stoked apprehension over Ankara’s ability to contain its growing economic woes. Not so long ago, in 2007, the dollar was worth 1.3 Turkish liras. This a far cry from where the lira has sunk in recent weeks as the central bank watched from the sidelines, restrained by a president averse to raising interest rates. On May 23, the lira plunged to a historic low of 4.92 against the dollar, losing as much as 5% in value, before the central bank finally hiked rates in an emergency move to salvage the currency and calm investors. Yet, given the confidence crisis gripping the markets, the price of the dollar might well break the psychological barrier of 5 liras before the June 24 elections.

How did the problem snowball to that point?

Though the lira had fallen all but three days this month, market hopes for a central bank intervention were unmet. The bank made do with a verbal intervention May 16, which read, “[The central bank] is closely monitoring the unhealthy price formations in the markets. Necessary steps will be taken, also considering the impact of these developments on the inflation outlook.” The dollar retreated for only hours before shooting up anew in the absence of a forceful measure.

The central bank’s credibility took another blow later in the day, when its governor — the head of a supposedly independent institution — was summoned to a meeting with President Recep Tayyip Erdogan at the most unlikely of places: the Justice and Development Party headquarters.