The Turkish lira plunged to an all-time low against the U.S. dollar on Wednesday, following the detention of Istanbul Mayor Ekrem İmamoğlu, a leading opposition figure and key challenger to President Recep Tayyip Erdoğan. The currency dropped more than 12% to trade at 42 lira per dollar, triggering panic in financial markets and forcing a temporary suspension of trading on Turkey’s stock exchange, Borsa Istanbul.
İmamoğlu was detained in an early morning police raid on his residence as part of a corruption probe, which his opposition Republican People’s Party (CHP) has denounced as a politically motivated move aimed at sidelining him ahead of the 2028 presidential elections. The CHP labeled the arrest a “coup against democracy” and called for nationwide protests.
The economic fallout was immediate, with Turkey’s stock market plummeting by 6.87%, forcing authorities to halt trading temporarily. The Finance Ministry sought to reassure investors, with Finance Minister Mehmet Şimşek stating on X (formerly Twitter) that “necessary measures are being taken to ensure the healthy functioning of markets.” However, analysts fear the turmoil could exacerbate existing economic challenges, including high inflation and investor skepticism over Turkey’s financial stability.
Public reaction was swift, with thousands gathering in Istanbul’s central districts to protest the detention. Police deployed water cannons and tear gas to disperse demonstrators, while the Istanbul Governor’s Office imposed a four-day ban on public gatherings in the city.
The move against İmamoğlu comes just days after Istanbul University revoked his degree amid allegations of academic fraud, a development widely viewed by critics as part of a broader campaign to discredit him. Human rights organizations, including Amnesty International and Human Rights Watch, condemned the arrest, with HRW calling it an “arbitrary and politically motivated attempt to suppress opposition.”
