Capital Economy, Business and Finance
Turkey has banned short-selling and spent more than $12 billion defending its currency after protests over the arrest of President Erdoğan’s main political rival destabilised the country’s stocks and currency markets.
More than 1,100 people have been arrested since Wednesday, when the leading opposition politician Ekrem İmamoğlu was detained on charges of corruption that critics say are politically motivated.
The net result: Turkish stocks have had their worst run since 2008. “Once again, President Erdoğan’s political agenda has inflicted serious damage on Turkey’s economic outlook,” analysts at Teneo say.
Turkey has battled chronic inflation over the past two years, bringing it down to 40 per cent in February from highs of 75 per cent last year.
Erdoğan’s intensifying repression of the opposition, media and civil society has undone this hard work and sent international investors running for the hills.
Photo credit: OZAN KOSE/AFP via Getty Images
