Back to today’s briefing

Story perspectives

Turkey's Economic Crisis Deepens Amid Political Turmoil

4/12/2025

25 2

Summary

Imamoglu's Arrest Sparks Turmoil

Turkey is grappling with rising tensions after the arrest of Istanbul's mayor, Ekrem Imamoglu. The Central Bank's reserves have nosedived by more than $45 billion since mid-March, triggering soaring borrowing costs and market chaos. This political turmoil is stifling sound economic policies, deepening the crisis as the national currency continues to falter.

Summary

Turkey's Reserves Plummet

Turkey's Central Bank revealed a troubling drop in gross reserves, plummeting from $156.5 billion to $154.3 billion by April 4. In just three weeks, net reserves fell by $7.4 billion to $48.7 billion, totaling a staggering loss of $34.3 billion. This swift decline raises alarming questions about the nation's external financing and currency stability.

1 of 2

Imamoglu's Arrest Sparks Turmoil

Turkey is grappling with rising tensions after the arrest of Istanbul's mayor, Ekrem Imamoglu. The Central Bank's reserves have nosedived by more than $45 billion since mid-March, triggering soaring borrowing costs and market chaos. This political turmoil is stifling sound economic policies, deepening the crisis as the national currency continues to falter.

1 / 2