Turkey in Turmoil: Istanbul Mayor’s Arrest Sparks Political and Financial Chaos

Turkey’s Political & Financial Crisis: What You Need to Know

March 19, 2025, will go down as a turning point in Turkey’s political landscape. In a dramatic move, Istanbul Mayor Ekrem İmamoğlu, seen as President Erdoğan’s strongest rival, was arrested on corruption and terrorism-related charges. This comes just days before the Republican People's Party (CHP) was set to announce him as their 2028 presidential candidate.

But the fallout wasn’t just political—Turkey’s financial markets went into freefall.

📉 Market Meltdown & Economic Shock

İmamoğlu’s arrest shook investor confidence, leading to:

🔻 Istanbul 100 Index plummeting 6.87%, triggering a market-wide circuit breaker.
💸 The Turkish Lira crashing over 10% against the US dollar, breaching the 40 TRY/USD threshold, a historic low.
📉 10-year sovereign bond yields surging 175 basis points to 29.94%, the highest this year.

With political uncertainty looming, foreign investors are on edge, and Turkey’s economic stability is now in question.

🚧 Social Unrest & Government Crackdown

As expected, protests erupted across Istanbul following İmamoğlu’s arrest. However, the government responded swiftly:

🚫 A 4-day ban on all protests and public gatherings across Istanbul.
🚇 Multiple metro stations shut down to limit mass mobilization.
🚧 Major roads blocked as security forces were deployed in key areas.

Despite the restrictions, reports indicate thousands of protesters gathering, demanding İmamoğlu’s immediate release.

🔮 What’s Next for Turkey?

The arrest of İmamoğlu signals a major shift in Turkey’s political landscape. With the 2028 election now uncertain, Erdoğan’s government is facing intense scrutiny both domestically and internationally.

For now, Turkey is in uncharted waters—politically, economically, and socially. The coming weeks will be crucial in determining the country’s direction.

Stay tuned. This story is far from over.