Arrest of Erdogan opponent sends Turkish lira to record low

The impact of the arrest of Istanbul Mayor Ekrem Imamoglu, a vocal opponent of Turkish President Erdogan, has also reached the country's economy.

According to Reuters, it has fallen to its lowest level on record, up to 12.7%. Meanwhile, stocks have fallen about 6%, adding to analysts' concern about the impact of politics on the economy.

“The market has been increasingly concerned about political investigations and arrests in Turkey,” said Tatha Ghose, EM & FX Analyst at Commerzbank.

Turkish Finance Minister Mehmet Simsek said that work is being done to ensure the healthy functioning of the markets, but without providing any specific details.

Serhat Baskurt, manager of algorithmic operations, said that the decline in the Turkish lira on the stock market is expected to continue in the coming days, as reported by Reuters.