Turkish lenders sell $8bln to stabilize lira after Imamoglu’s arrest

By Al Mayadeen English
Source: News Websites
19 Mar 2025 22:27

Turkish lenders have sold billions to stabilize the lira following a drastic plunge amid Imamogulo's arrest, fueling market fears over political and economic instability.

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A man wears a banner featuring a photo of Istanbul Mayor Ekrem Imamoglu as he and others protest outside the Vatan Security Department, Turkey, Wednesday, March 19, 2025. (AP)

Turkish financial institutions sold approximately $8 billion by midday on Wednesday in a bid to support the lira, after the currency plummeted by as much as 11% following the detention of Istanbul Mayor Ekrem Imamoglu, according to sources with direct knowledge of the matter.

The intervention in the lira market was carried out through multiple lenders, the sources said, speaking on condition of anonymity.

The detention of Imamoglu—widely seen as President Recep Tayyip Erdogan’s main political rival—sent shockwaves through Turkish markets, triggering a sharp selloff. As of 12:45 p.m. in Istanbul, the lira was trading 5.5% lower at 38.8565 per dollar.

The currency crisis underscores investor fears over political instability and economic uncertainty, with analysts warning that further turmoil could exacerbate pressure on Turkiye’s already fragile economy.

Turkish police detain Istanbul mayor over corruption probe

Turkish police have detained Istanbul Mayor Ekrem Imamoglu on charges of leading a criminal organization, bribery, tender rigging, and aiding a terrorist group, broadcaster CNN Turk reported on Wednesday.

Following Imamoglu’s detention, Turkiye restricted access to multiple social media platforms, including X, YouTube, Instagram, and TikTok, according to the NetBlocks internet observatory.

In a separate development, a Turkish university on Tuesday revoked Imamoglu’s degree, alleging it was fraudulently obtained.

Under the Turkish constitution, a presidential candidate must hold a higher education degree.

Imamoglu denounced the ruling as "unlawful" and vowed to challenge it in court.

"We will fight this illegitimate decision in court," said the 53-year-old, who has faced mounting legal challenges that critics describe as politically motivated.

"We will build a system that will erase injustice from this country's memory," he added, warning that those responsible for the decision would one day be held accountable.

Erdogan has long denied allegations that he himself never completed university and was therefore constitutionally ineligible for the presidency.