Cash Arsenal Allows Erdogan to Weather Worst Crisis in Years
Turkish stocks tumbled 17%, the lira briefly dropped past 40 per the US dollar and bond yields surged as news of the detention spread.
Photographer: Kerem Uzel/BloombergThis article is for subscribers only.
Turkey spent the past year rebuilding its depleted foreign-exchange reserves, fortifying a financial buffer that has proven critical in navigating market turbulence.
That war chest gave authorities the firepower to withstand the country’s biggest crisis in nearly a decade, triggered by the detention of Istanbul Mayor Ekrem Imamoglu, President Recep Tayyip Erdogan’s most formidable rival.