The Turkish lira falls to a record low after the arrest of the Istanbul mayor
The Turkish currency plunged sharply, last trading at 42 liras against the US dollar on Wednesday, after authorities arrested President Recep Tayyip Erdoğan’s political rival and Istanbul Mayor Ekrem İmamoğlu on charges including corruption and aiding a terrorist group.
The Turkish lira currently run around 38 to the US dollar.
On the same context, the Istanbul Stock Exchange announced a temporary trading halt after the main index fell 6.87% in early trading, and a market-wide trading break mechanism was activated.
On this regard, Turkish Finance Minister Mehmet Şimşek said, “Everything necessary is being taken to ensure the healthy functioning of the markets,” referring to and commenting on the historic decline in the value of the Turkish lira since the morning hours.
“The economic program we are implementing with determination and resolve will continue,” he added in a post on X.
The arrest of Istanbul mayor, Ekrem İmamoğlu, who is a prominent figure in the Republican People’s Party (CHP), Türkiye’s largest opposition party, came after the Turkish public prosecutor brought charges against him on two counts.
While the first track involved the establishment of a criminal network engaged in extortion and bid manipulation, the second track involved accusing the mayor of Istanbul of running a political campaign affiliated with the Kurdistan Workers’ Party (PKK), a designated terrorist organization.
İmamoğlu’s arrest also coincided with his campaign to become the Republican People’s Party’s (CHP) presidential candidate, and followed a decision by Istanbul University to invalidate his degree.
