Its worst week in the last two years is expected to be closed today (21.3.25) Turkish pound Because of the political riots that plague the Turkey after the arrest of the Mayor of Constantinople.
In particular, the Turkish pound was negotiating 0.5% below 38 per dollar in Istanbul today, expanding its losses in the last five days to 3.7%, its worst performance since June 2023, according to a Bloomberg report.
The decline began on Wednesday, March 19, 2025, after the Turkish authorities arrested Constantinople Mayor Errem Imamoglu, the strongest opponent of President Recep Tayyip Erdogan. Banks sold up to $ 9 billion and the central bank has giant interest rates to defend the currency.
The monetary authority’s decision was aimed at limiting the outflows from pound deposits, Goldman Sachs economists Clemens Grafe and Basak Edizgil said in a report.
Turkey’s borrowing rate increase by 200 basis points yesterday (20.3.2025) will allow policymakers to increase the average funding costs they provide to commercial lenders and prevent a weaker pound from staging inflation.
The bank also said it would suspend lending at its lowest, basic reference rate, the one -week RepO – which is at 42.5% – for an unspecified period of time.