Political Turmoil Impacts Turkish Lira

In a significant turn of events, the Turkish lira has plummeted to unprecedented lows against the US dollar and the euro. This dramatic shift is largely attributed to the ongoing political instability within the country.

Arrest of Istanbul Mayor Adds to Tensions

Adding fuel to the fire, Turkish authorities have detained Istanbul Mayor Ekrem Imamoglu amidst a corruption investigation. This arrest is particularly noteworthy as it precedes Imamoglu's anticipated nomination as the Republican People's Party's (CHP) candidate for the 2028 presidential election. Furthermore, the recent annulment of Imamoglu's diploma by Istanbul University has effectively barred him from presidential eligibility, intensifying the political drama.

Currency Markets React

The financial markets have responded swiftly to these developments. At 8:32 am CET, the US dollar surged by 5.60% against the Turkish lira, reaching 38.75039. Shortly thereafter, the euro experienced a 5.44% increase against the lira, climbing to 42.44358. These movements underscore the significant impact of political events on currency valuations.