Update 12:31 March 20, 2025:
The arrest of Istanbul Mayor Ekrem İmamoğlu has thrown Turkey into political and economic disarray. As demonstrations erupted across major cities, protesters denounced the detention as a blatant attempt by President Recep Tayyip Erdoğan to eliminate his most viable challenger ahead of the 2028 presidential election. The backlash has extended well beyond the streets, shaking investor confidence and drawing condemnation from European leaders.

Within hours of the announcement, the Turkish lira plummeted to a historic low, dropping over 12% against the U.S. dollar before modestly rebounding to 38.90. The Borsa Istanbul 100 Index also took a severe hit, forcing multiple trading halts as market volatility surged. Analysts warned that the erosion of judicial independence and democratic norms could drive away foreign investment and further destabilize the country’s fragile economy.

Meanwhile, Erdoğan’s government has insisted the arrest stems from legitimate legal concerns, a claim dismissed by opposition parties and civil rights groups as politically engineered. The European Union issued a formal statement expressing “grave concern” over the arrest and urging Ankara to respect democratic institutions. The fallout from İmamoğlu’s detention may only be beginning—on the streets, in the markets, and inside Turkey’s fractured political system.

Original report:

In a move that underscores President Recep Tayyip Erdoğan’s tightening grip on Turkish politics, Istanbul Mayor Ekrem İmamoğlu, a prominent opposition figure, was detained on baseless charges of corruption and alleged ties to terrorist organizations.

The arrest, which occurred just days before İmamoğlu was expected to secure the Republican People’s Party (CHP) nomination for the 2028 presidential election, has been widely condemned by opposition leaders. They describe the detention as a politically motivated attempt to sideline Erdoğan’s most formidable rival.

Compounding the situation, Istanbul University annulled İmamoğlu’s degree, a credential required for presidential candidacy, effectively barring him from future elections.

These developments have sparked public outrage, leading to protests across Istanbul. In response, authorities have implemented measures to suppress dissent, including road closures and bans on demonstrations. ​

Financial markets reacted negatively to the news, with the Turkish lira dropped to a record low and the stock market experiencing significant declines.

This incident is part of a broader pattern of Erdoğan’s efforts to consolidate power, which includes previous purges of opposition figures, journalists, and academics following the 2016 coup attempt. ​