Turkey is battling a financial crisis after the arrest of İmamoğlu.

The Turkish government is trying to halt the decline of the currency and stock market after a political crisis arose due to the imprisonment of President Erdoğan's rival.

Reports indicate that the lira has dropped by 2% against the dollar, and there have been sell-offs in the government bond market.

The national currency of Turkey has reached a new historic low against the dollar and euro following the arrest of the mayor of Istanbul over corruption schemes. This has sparked mass protests in the country.

According to Deutsche Bank strategist Jim Reid, the situation could have been worse, but since İmamoğlu was not accused of terrorism, the protests did not escalate to extreme measures.

The widespread devaluation of the lira is occurring due to Erdoğan's large expenditures, excessive budget overruns, and political pressure on the opposition. These factors have already led to losses in local markets and currency devaluation.

Currently, the economic situation in Turkey is stabilizing, with a decrease in inflation and an increase in confidence in the banking system. The current account deficit stands at less than 4% of GDP.

However, the economy may face further consequences as the situation continues to develop. Investors are warning of potential tightening measures from the Central Bank and further increases in import prices, which will lead to higher inflation.