Investors around the world have their eyes glued to the explosion of violence in Türkiye. For days, thousands of Turks have been demonstrating against the moderate Islamic government led by Erdogan.
Political instability is having immediate effects on Istanbul Stock Exchange which, aided by investor fears over anti-government protests, started trading down by 8%. The Turkish stock market, supported by a high growth rate of the economy, has always been booming in recent years; however, the latest political events have led not only to heavy losses (at 15:40 the Turkish Bist 100 index recorded a decrease of 8,64%) but also to a decrease of the Turkish lira, slipped to the lows of the last 15 months against the dollar.
I ten-year bond yields they paralleled rose to 7,12% from 6,48% on Friday.
“I would expect the Turkish authorities, especially the central bank, to be active in reinsuring investors,” said Timothy Ash, head of emerging markets research at Standard Bank.
