The Turkish lira has fallen to a record low against the U.S. dollar, trading at 40.96 before recovering slightly to 38.74, following the surprise arrest of Istanbul Mayor Ekrem Imamoglu. The country’s benchmark stock index, the BIST 100, dropped by as much as 7% in response to the news, which has raised concerns about political stability.
Imamoglu, a prominent opposition figure and potential presidential candidate, was arrested on charges including terrorism and organized crime, which he denies. His party, the Republican People’s Party (CHP), condemned the arrest as a coup attempt, asserting that it undermines the democratic process.
The CHP is set to hold a primary election on March 23, where Imamoglu was expected to be the leading candidate for the presidency.
In recent years, many Turkish people have turned to bitcoin, USD stablecoins, and other cryptocurrencies to protect against the ever-falling value of the Turkish lira.