Turkey swears in President Erdogan

Erdogan acquired 52.5 percent of the votes in the presidential election on June 24

Erdogan acquired 52.5 percent of the votes in the presidential election on June 24

"As the 12th president [of the nation] and the first president of the presidential system, I once more vow to strengthen the unity and brotherhood of our nation, develop the country, and elevate the state".

Presidential aide Ibrahim Kalin said Erdogan would visit the mausoleum of Turkey's founder, Mustafa Kemal Ataturk, following the swearing-in ceremony.

Under the new decree, the president will decide on the promotion of top officers, including colonels, brigadier generals, rear admirals, generals and admirals, in the Turkish Armed Forces (TSK).

"Albayrak becoming the finance minister is not a good sign especially because of his close relationship with President Erdogan".

Under the new system, Erdogan will not only run the executive branch but also lead his Justice and Development Party in parliament where he is six short of a majority and therefore allied with a nationalist party.

The appointment of Erdogan's son-in-law "will worry a number of investors and some of the markets, because they didn't much enjoy dealing with Albayrak when he was the energy minister", Peter Westmacott, who served as former British ambassador to Turkey from 2002 to 2006 told CNBC.

Erdogan named his son-in-law Berat Albayrak as treasury and finance minister in an updated cabinet that excluded former deputy prime minister Mehmet Simsek, seen as the main market-friendly minister in the previous government.

Turkey's Tayyip Erdogan fulfilled a long-held ambition on Monday when he was sworn in as president with sweeping new powers over a country he has dominated and reshaped during his 15-year rule.

Current Foreign Minister Mevlut Cavusoglu could, in theory, continue in his job but reports have said Erdogan may choose his spokesman, Ibrahim Kalin, or even spy chief Hakan Fidan to succeed him.

The Turkish lira lost 3.5 percent in value on the news to trade at 4.73 lira to the dollar.

The lira currency, which has been battered this year by concerns about President Tayyip Erdogan's drive for greater control over monetary policy, declined after the changes were published. Erdogan has described the consolidation as a means to eliminate governmental inefficiency, and his base views his consolidation of authority as a deserved outcome for a leader who has instilled Islamic values in public life, according to Reuters.

Under the new executive presidential system, the Cabinet will be reduced from 26 to 16 while the Prime Minister's office will be abolished.

He has also pledged to end the state of emergency that has been in place since the failed July 2016 coup and has seen the biggest purge in the history of modern Turkey.

"When you scrap the five-year term you remove this shield", he said. Investors are keen to see Mehmet Simsek, now deputy prime minister, continue at the helm of the economy. "In other words, Turkey will be an institutionalized autocracy".

The new cabinet, due to be announced at 1800 GMT, is expected to have a different look, especially after Erdogan said the government would include non-AKP figures.

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