Turkey Quake on Turkish financial markets continues
The financial markets in Turkey are not calming down following the arrest of the mayor of Istanbul and rival of head of state Recep Tayyip Erdogan. Shortly before the weekend, the sell-off in Turkish shares and government bonds continues.
21.03.2025, 17:19
SDA
Some of the losses have recently been greater than on Wednesday, when the arrest of Ekrem Imamoglu put the Turkish financial markets under enormous pressure.
Stock market in free fall
The leading index on the Istanbul Stock Exchange, the Borsa Istanbul (BIST) 30, extended its slide and recently fell by 7.5 percent. It thus reached its lowest level since November last year. The Turkish stock market had already suffered similarly heavy losses on Wednesday.
Before the arrest of Istanbul Mayor Imamoglu, the BIST 30 had still been stalking its record from July 2024. Since then, the price barometer has fallen by more than 17 percent.
Government bonds continue to fly out of portfolios
There was also a renewed sell-off in Turkish government bonds. In turn, yields rose sharply. Yields on ten-year bonds jumped to just under 31 percent.
Since the beginning of the trading week, yields have thus risen by almost four percentage points. By comparison, German government bonds are currently trading at a yield of just 2.76 percent.
The authorities in Turkey recently imposed a ban on demonstrations in Istanbul and other cities and provinces. In the capital Ankara, a ban on demonstrations and gatherings is in place for five days up to and including Tuesday (March 25). The Turkish opposition party CHP had previously called for nationwide demonstrations.
Imamoglu was arrested on Wednesday - just a few days before his planned nomination as presidential candidate. Among other things, he is accused of membership of a criminal organization and corruption.
National currency remains under pressure
The Turkish lira came under selling pressure on the currency market shortly before the weekend. However, the losses were limited. Most recently, 38 lira was paid for one US dollar and just over 41 lira for one euro.
