Arrest fuels Turkish lira’s record decline
Shafaq News/ Turkiye intervened inthe foreign exchange market on Wednesday after the lira plunged nearly 10%,hitting a record low of 40 per US dollar.
To contain losses, Turkish bankssold approximately $8 billion in foreign reserves, Bloomberg reported. Thesell-off deepened after authorities detained Istanbul Mayor Ekrem ?mamo?lu oncorruption charges and alleged ties to the Kurdistan Workers’ Party (PKK), agroup designated as a terrorist organization by Turkiye.
His arrest, which heightenedpolitical uncertainty, fueled a wider market sell-off. The lira’s sharp declinetriggered a suspension in stock market trading as equities plummeted.Government bond yields surged to their highest levels this year as investorsoffloaded Turkish assets, deepening concerns over "politicalinstability" and potential "government intervention infinancial markets."
