In a dramatic twist for Turkey, nationwide protests have intensified following the detention of Istanbul mayor Ekrem Imamoglu. Seen by many as a pivotal moment in the political struggle between him and President Recep Tayyip Erdogan, the arrest has ignited both public dissent and financial alarm.
Amid the turmoil, Central Bank policymakers have swiftly introduced measures aimed at stabilizing the market. The new regulations include a curb on short-selling and an easing of share buy-back rules. These decisions come as investors react strongly, with the Turkish lira plunging over 10 percent to a record low against the U.S. dollar.
Meanwhile, Turkey's main BIST 100 index suffered its biggest one-day drop in three years, falling by 6.8 percent before trading was temporarily suspended. Long term government borrowing costs have also surged, reaching their highest point in over a decade, a sign of the increasing financial strain.
The detention of Imamoglu, who was endorsed by the Republican People's Party as the opposition candidate for the 2028 presidential elections, has added a significant layer of political tension. As protests enter their fifth day, market watchers and citizens alike are questioning the long-term impact of these developments on Turkey's economic stability and political landscape.
Analysts continue to monitor the situation closely, highlighting the delicate balance between political events and economic policies. The coming days will be critical in determining whether the emergency measures can restore investor confidence and put the market back on a more stable course.
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Türkiye battles to stop market rout as protests over mayor continues
cgtn.com
