Turkey's lira reaches new record low following arrest of Istanbul mayor
It hasn't been a good day for Turkey. As of 11:50 Istanbul time now, the greenback is swapping hands for a hefty 39.34 lira (+7.25%). Just a few hours ago, the dollar skyrocketed by 11.99%, reaching 41.1 lira, before the surge cooled off.
This buckstorm is unfolding in the midst of a political storm. Bloomberg reports that the mayor of Istanbul, Ekrem İmamoğlu, a thorn in Turkish President Recep Tayyip Erdoğan's side, has been carted off to the clink. İmamoğlu, 54, was taken into custody this morning, a day after Turkish authorities nixed his university degree, which would disqualify him from participating in the 2028 presidential elections in Turkey – only university graduates can vie for the position in Turkey.
The charges slapped against İmamoğlu are corruption and aiding the Kurdistan Workers' Party (PKK), branded a terrorist group by Turkey. The main opposition party, the Republican People's Party (CHP), from which İmamoğlu could run for president, called this "an attempt to overthrow the next president," according to Reuters.
The fall of the Turkish lira and the stir in the stock market aren't the only casualties. The Borsa Istanbul 100 index plummeted by 6.9% at opening, triggering a trading halt. Upon reopening, the decline eased to 4.6%. To add salt to the wound, the yield on government bonds soared by 175 basis points, reaching a staggering 29.94%, as per Bloomberg.
To maintain order, the governor of Istanbul, Davut Güçlü, has imposed a four-day ban on rallies and protests within the city. After İmamoğlu's detention, Turkish authorities have also clamped down on several social media platforms, including the previously known Twitter, YouTube, TikTok, and Instagram (owned by Facebook, branded as extremist and outlawed in Russia), reports NetBlocks.
Stay tuned for more updates on this developing situation.
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- "The arrest of Istanbul's mayor, Ekrem İmamoğlu, a rival of Turkish President Recep Tayyip Erdoğan, has added fuel to the political fire in Turkey."
- "The charges against İmamoğlu include corruption and aiding the Kurdistan Workers' Party (PKK), and the opposition party considers this a ploy to undermine the next president."
- "The financial turmoil, with the Turkish lira plummeting and stocks collapsing, seems to be a result of the political storm engulfing the country."
- "In an attempt to maintain order, the governor of Istanbul has imposed a ban on rallies and protests, and Turkish authorities have also shut down several social media platforms."
