Turkey: Political turmoil increases the cost of borrowing in two years record

Increased to the highest level of the last two years the cost borrowing Turkish pounds in the offshore market, after arresting the main political opponent of President Recep Tayyip Erdogan by authorities at Turkey For corruption categories yesterday (19.3.2025).

The lending rates, known as Next-Day Offshore Forward Impled Yields (offshore deadlines of the following day), stood at 175% today (20.3.2025) early in the morning in Constantinople for just below 38% in Turkey.

Constantinople Mayor Eremm Imoglou, the most popular Turkish politician who could one day challenge the President’s power, was detained, prompting protests by members of the opposition. The detention of the mayor – with categories that refuses – highlights an increasingly aggressive campaign that Erdogan is conducting against critics to silence the disagreement.

The investigation against his most terrible opponent serves as a strong reminder of the dangers of investing in Turkey, where assets have declined the largest decline in the world on the day of arrest. Authorities said they were spent up to $ 9 billion to support the pound. The currency has shown some signs of stabilization, as investors bet that the risk of overthrowing economic policy – including strict monetary policy – remains limited.

The currency dropped 0.3% and negotiated at $ 37,9952 per dollar this morning after a 3.2% drop yesterday (19.3.2025). Futal fulfillment contracts for Borsa Istanbul 30 fell 0.4% to the opening, signaling that selling pressure on Turkish shares could also relax. The main Turkish stock index declined 8.7% on the day before.