The cost of borrowing in Turkish pounds in offshore market as well as its debt premiums Turkey against bankruptcy are kept close to levels formed last week, a sign that the investors remain deep nervous after a wild period for the market. The pound fell against the dollar.
The offshore interest rate was at 187%, moving close to the highest level since June 2023. Turkey’s five -year Swap credit defense was at 327 basis points, slightly changing from Friday (21.03.2025) that showed one year high.
The moves suggest that investors are preparing for further volatility in Turkish assets on Monday, following the official arrest and imprisonment of Constantinople Mayor Eremm Imoglou for corruption charges on Sunday. The politician was widely renowned as President Recep Tayyip Erdogan’s biggest opponent in the next national elections. Demonstrations against arrest and clashes with police forces continued in major cities on Sunday.
The pound moves about 0.1% lower to 38,0086 per dollar, according to Bloomberg data.
Supportive measures
Imamoglou’s detention last week caused a market downplaying, causing a fall in the Turkish pound and the stock market, as well as ejecting bond yields. The country’s top financial and financial institutions quickly got a job in an effort to limit the impact.
The central bank met with bank executives on Sunday to discuss potential market volatility and future steps, Bloomberg said. The Bank Association later stated that monetary authorities and banks had a “technical meeting”.
Separately, the Minister of Finance and Finance Minister Mehmet Simsek met with regulatory authorities on the measures to be taken against market turmoil.
The regulatory authority of the Turkish market has also announced a wide range of measures on Sunday night to stimulate the market. These measures included the prohibition of open sales, more relaxed terms for shares and reduce the minimum claim for the protection of the share capital for profit margin transactions.