Today (23.3.2025) a ‘technical meeting’ was held between their official her Turkey Central Bank and commercial lenders to prepare for possible market volatility after the official arrest of a key opposition politician.
Specifically, officials from the Turkish Central Bank would discuss coordination with the banks and reported the recent sell -off in Turkish markets, according to Bloomberg.
The meeting marks one of the first high -level rallies between the country’s lenders and the monetary authority since the popular Mayor of Constantinople, Ekrem Imamoglou, was detained earlier this week, upsetting markets.
The pound, Turkish shares and debt have made some of the largest reductions in the world, as investors have weighted the risk of a possible overthrow of Turkey’s economic policy.
Finance and Finance Minister Mehmet şimşek met with banks on Friday (21.3.2025), telling them that policy makers would use all the tools available to mitigate the “temporary” market variability.
Imamoglu, who is considered the most important opponent of President Recep Tayyip Erdogan, was imprisoned today on charges of corruption. The court that examined the charges against him decided not to make a separate, official arrest of terrorism categories.
The central bank of Turkey has already reinforced the pound defense mechanism to ensure that financial conditions remain tight. In addition, it raised the one -day borrowing rate by 200 basis points to 46%, increasing the average funding costs for commercial lenders and suspended lending at the lowest 42.5% reference rate for an unspecified period of time.
The bank also stated that it will carry out a 91 -day liquidity auction, an action that has not been taken for two decades, with the aim of absorbing the excess pound.
Following these actions, the pound rate of the pound for one day, which is an indicator of the cost of funding one day, increased more than 3 percentage points to 45.7%.