Türkiye is brushing: The main Turkish index XU100 ended last week with a loss of 16.6 percent. It was the worst week since 2008. Turkish Lira lost as much as 11 percent at the worst moment. down dollar American, but eventually ended a week with a drop of 3.5 percent. The National Council for the Capital Market has banned short sales on the Istanbul Stock Exchange and softened restrictions on the purchase of shares and requirements for the equity indicator. In addition, the government laid down about $ 10 billion to save the Turkish currency. On Monday This gives delicate results, but it was not possible to significantly stimulate the market. The Turkish Index XU100 has grown by almost 3 percent, although it is still the weakest since November 2024. Bonds with the incidence date in 2045 also increased by 0.5 cent and reached the price of 83.59 cent per dollar. Although last week they had a decrease by over 3 cents. In turn, Turkish lira in relation to the dollar is still record weak (you have to pay above 38 lira per dollar).
Poor perspectives: Last week's breakdown resulting from a political row is more than just a one -time “crisis”. Economists almost agree that from what happened in Turkey, this country will be scanty for a long time. “Fears of the rule of law will persist, which is probably will hurt long -term flows of foreign investments direct, which are already low, “noticed Timothy Ash, a strategist of emerging markets in Bluebay Asset Management. – Once again, the political program of President Erdogan caused serious damage to Turkey's economic perspectives. While short -term uncertainties crazy, they appear new Medium -term and long -term risks, increasing the perception of market risk – adds Ahmet Deniz Yagbasan, research analyst at Ahlatci Mazkul Degerler.
There is no good choice: The efforts of Turkish economists undertaken in recent months, to tame inflation, could be missed in a moment. Let us remind you that it remains extremely high. In February reached 39.05 percent However, the political row makes (and probably it will cause) that investors sell out the Turkish currency, which in turn conquers inflation. To tame her, Turkish bank Central may consider a further increase in interest rates, which are (attention!) At 46 percent. He raised them somehow, ahead of what would happen in the economy last week. In this way, the rulers probably do not win the sympathy of ordinary Turks, who are furious at what is happening in the country. Anti -government emotions have already increased in the country, including due to high inflation. The head of the Central Bank Fatih Karahan said at a special meeting with the bank's directors said that he would use all the instruments “effectively and definitely” to maintain stability.
What is happening in Turkey? Turkish police last week stopped the worker of the imamogle, the opposition mayor of Istanbul. According to the local authorities, “in connection with the investigation of corruption and connections with terrorism.” This is the main rival of President Recep Erdogan. Over the past week he was questioned and found guilty, and then imprisoned in custody. From the date of his detention on Wednesday, in Turkish cities, many thousand protests take place every day. The media reported that at some point they even protested 300 thous. people. The imprisoned politician was officially exposed to the presidential candidate. This was done by his Republican People's Party (CHP).