The dollar is trading around 38 lira on the first business day of the week. Meanwhile, the Euro/TL is changing hands at 41.32.
Following the arrest of Istanbul Metropolitan Municipality (IMM) Mayor Ekrem İmamoğlu, there is close monitoring of the movements in the stock and foreign exchange markets. The Dollar/TL is trading at 38 levels on the first business day of the week, while the Euro/TL is changing hands around 41.32. Last week, after İmamoğlu’s detention, the dollar reached 41 lira, and the euro hit 45 lira, breaking records. There was a faster pace in sales on the Istanbul Stock Exchange. The BIST 100 had dropped to 9,000 points with a close to 15% loss last week.
GOVERNMENT TAKES ACTION
Due to the potential market movements, some measures were put into effect yesterday. Treasury and Finance Minister Mehmet Şimşek said, “We are on duty. We will continue to take all necessary steps for the healthy functioning of the markets.” A technical meeting was held between the Central Bank and the Association of Turkish Banks. It was stated that all necessary tools within market rules would be effectively and decisively used to sustain stability.
SHORT SALES BANNED
Short selling has been banned for a month on the Istanbul Stock Exchange while decisions facilitating share buybacks were announced. The order/trade ratio (OTR) on the stock market has been reduced from 5:1 to 3:1 between March 24, 2025 and April 25, 2025 (until the end of the session).
The threshold crossing fee for order/trade ratio was increased from 0.25 TL to 0.50 TL starting from March 24, 2025. It was mentioned that this practice aimed to narrow down the trading activities of algorithms.