Turkey shuts down markets after another crash

The monetary crisis in Turkey reached a new low on Friday. The lira lost 8 percent of its value on Friday, a day after President Recep Tayyip ordered Erdogan to cut interest rates despite the country’s raging inflation — countering current central bank policies.

In the wake of the currency crash, shares on the Turkish stock markets also fell sharply on Friday. After the Borsa Istanbul 100 index lost 7 percent of its value, an automatic security system kicked in and suspended trading in all stocks and securities twice in an hour.

How Erdogan talked his own currency into the deep end

That did not bring much solace. Immediately after the stock markets reopened in the evening, the stock market index fell by 2 percentage points in two minutes.

“The stock market crash could be the point where Erdogan loses all support,” says stock analyst Nick Stadtmiller. Bloomberg. ‘For the time being, the stock markets were spared all the malaise. But now the Turks are also withdrawing from the stock markets. This can only accelerate the capital flight out of the country.’

In an unusual press release, the chairman of the Istanbul Chamber of Commerce also said on Friday that he was “stunned” by Erdogan’s monetary policy.

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