24.03.2025, 22:10
The Turkish authorities are taking measures to stabilize the exchange rate of the lira and the stock market
Source: OREANDA-NEWS
OREANDA-NEWS The Turkish authorities are taking measures to stabilize financial markets after the downturn caused by the news of the detention of the mayor of Istanbul, opposition politician Ekrem Imamoglu.
On Monday, the lira lost 0.5% against the US dollar, while the Borsa Istanbul 100 stock index gained 2.8%. Last week, the lira fell by 3.1% against the dollar, and the stock indicator collapsed by 17%.
Last Thursday, the Central Bank of Turkey held an extraordinary meeting, following which it raised the overnight loan rate by 2 percentage points to 46%, in an effort to tighten financial conditions and support the lira.
Over the weekend, the Central Bank's management held a "technical meeting" with representatives of commercial banks to prepare them for the potential increase in volatility in financial markets, the Association of Turkish Banks said. The Central Bank also announced its intention to hold an auction for the placement of bills for a period of 91 days in order to reduce the excess of lira in the financial system, the first such auction in almost 20 years.
Among other steps being considered by the Turkish authorities is a reduction in the tax on deposits in lira, which should stimulate savings in the national currency, Bloomberg reports, citing informed sources.
Last Sunday, the Turkish regulator responsible for capital markets expanded the ban on "short" sales on the stock market, which previously applied only to securities of the 50 largest companies. He also relaxed the buyback rules, allowing companies to buy back shares at a price higher than the closing level of the previous session.
In addition, the regulator lowered margin requirements for stock trading in an effort to prevent further market declines.
As reported, Imamoglu, who has served as mayor of Istanbul since 2019, was detained on March 19 as part of an anti-corruption investigation. He was considered the main opposition candidate in the Turkish presidential election in 2027. Earlier, Istanbul University revoked Imamoglu's higher education diploma, despite the fact that only a person with higher education can become a candidate for president of Turkey.
Imamoglu's detention sparked protests in Turkey, during which more than 1,000 people have already been detained.
The dollar exchange rate as of 19:10 Moscow time on Monday is 38.0072 lira.
On Monday, the lira lost 0.5% against the US dollar, while the Borsa Istanbul 100 stock index gained 2.8%. Last week, the lira fell by 3.1% against the dollar, and the stock indicator collapsed by 17%.
Last Thursday, the Central Bank of Turkey held an extraordinary meeting, following which it raised the overnight loan rate by 2 percentage points to 46%, in an effort to tighten financial conditions and support the lira.
Over the weekend, the Central Bank's management held a "technical meeting" with representatives of commercial banks to prepare them for the potential increase in volatility in financial markets, the Association of Turkish Banks said. The Central Bank also announced its intention to hold an auction for the placement of bills for a period of 91 days in order to reduce the excess of lira in the financial system, the first such auction in almost 20 years.
Among other steps being considered by the Turkish authorities is a reduction in the tax on deposits in lira, which should stimulate savings in the national currency, Bloomberg reports, citing informed sources.
Last Sunday, the Turkish regulator responsible for capital markets expanded the ban on "short" sales on the stock market, which previously applied only to securities of the 50 largest companies. He also relaxed the buyback rules, allowing companies to buy back shares at a price higher than the closing level of the previous session.
In addition, the regulator lowered margin requirements for stock trading in an effort to prevent further market declines.
As reported, Imamoglu, who has served as mayor of Istanbul since 2019, was detained on March 19 as part of an anti-corruption investigation. He was considered the main opposition candidate in the Turkish presidential election in 2027. Earlier, Istanbul University revoked Imamoglu's higher education diploma, despite the fact that only a person with higher education can become a candidate for president of Turkey.
Imamoglu's detention sparked protests in Turkey, during which more than 1,000 people have already been detained.
The dollar exchange rate as of 19:10 Moscow time on Monday is 38.0072 lira.
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