Turkey is facing unprecedented challenges as protests and arrests spread across the nation, threatening economic stability and democracy. More than 1,100 people have been arrested since demonstrations began on March 19, with Istanbul Mayor Ekrem Imamoglu’s arrest on corruption charges exacerbating tensions.
Central bank officials spent $12 billion to prop up the lira, which hit a record low of over 40 to the dollar. Analysts warn of a prolonged period of volatility for the Turkish economy. President Erdogan has dismissed the protests as “street terror,” while critics argue that his government’s crackdown on opposition activity is eroding democratic rights.
Erdogan’s decision to neutralize Imamoglu, who was expected to be nominated as his party’s candidate, has been seen as a bid to maintain power. Economists fear that investor confidence is being eroded, undoing the progress made by Turkey’s finance leaders in addressing inflation and stabilizing the economy.
The situation remains uncertain, with analysts predicting that Turkey will struggle to regain economic stability. The country’s democratic norms are under threat, and critics warn that Erdogan’s government is on the verge of becoming a dictatorship. With presidential elections set for 2028, Erdogan’s actions have sparked concerns about his intentions and the future of Turkish democracy.
Source: https://www.cnbc.com/2025/03/24/political-and-financial-turmoil-set-to-dominate-turkey-risking-economic-stabilization-plans.html