Turkish lira freefalls as crackdown on opposition intensifies
Shafaq News – Ankara
The Turkish lira plunged past 40 to the dollar on Tuesday, rattled by growing political instability and an intensifying crackdown on opposition leaders ahead of local elections.
The currency fell to 40.17 in early trading, bringing year-to-date losses to roughly 11%. Investors cited political risk and eroding trust in the judiciary as key drivers of the selloff, deepening concerns over Turkiye’s institutional credibility.
Over the weekend, authorities arrested several opposition mayors from the Republican People’s Party (CHP) in southern provinces, including Adana, Adiyaman, and Antalya, under what officials described as corruption probes.
Markets reacted swiftly. Turkish sovereign bonds maturing in 2045 dropped nearly one cent, credit default swaps rose 13 basis points to 292, and the Borsa Istanbul Index (XU100) slid 1.2%, weighed down by banking and large-cap losses.
Tensions escalated further after France condemned the arrests. The Turkish Foreign Ministry dismissed the criticism as foreign “interference,” insisting that “Turkiye, as a state governed by the rule of law, guarantees fair and impartial proceedings.”
Regarding the Statement of the French Ministry for Europe and Foreign Affairs on the Judicial Processes in Türkiye https://t.co/lkicCGzDaa pic.twitter.com/v64cs5SQMW
— Turkish MFA (@MFATurkiye) July 7, 2025
While the ministry defended the detentions as legally justified and overseen by independent courts, it accused Paris of “a double standard,” referencing unnamed legal actions against French opposition figures and urging it to focus on its own domestic affairs.
