Türkiye’s besieged economy is to bear more turmoil and investor trip, as protests erupted against a large number of controversial arrests taken by the government of President Reib Tayeb Erdogan.

The demonstrations respond in response to the arrest of the mayor of Istanbul, Akram Emamoglu, a pioneering opponent in Erdogan, just days before he is expected to be nominated as a candidate for his party for the presidency.

Turkish markets were sank more in the world on Wednesday after the news of IMamoglu’s detention, where a lira recorded the lowest level in the dollar. This led to the fact that the central bank in Türkiye sells a record amount of foreign currency – about $ 10 billion, according to bankers accounts Reuters was martyred To support the besieged currency, which has decreased by 15 % on the dollar last year and decreased by 83 % during the past five years.

Imamoglu, from He won the municipality of the city most overcrowded in Türkiye In April 2024, charges were arrested including terrorism and organized crime, which he and his supporters reject. Prosecutors also issued the orders of 100 other people, including journalists, businessmen, and members of the CHP in IMamoglu, the main opposition group in Türkiye. CHP leaders describe arrest as a “coup.”

The Istanbul Governor’s office imposed a ban on protests as well as closing the metro and roads, while social media and access to the Internet in the country are still very restricted. In response, the demonstrators gathered in the city’s beads and the campus to express their anger.

CNBC contacted the Ministry of Interior in Türkiye to comment. Government officials denied that the arrests are of political motives and insist that the courts are working independently.

In a post on Google on the x x social platform on Thursday, Turkish Interior Minister Ali Yerlikaya said that the authorities detained 37 people for social media participants that he considered “provocative” and retreated under the classification of “incitement to commit a crime”, according to Google’s translation of the position.

The 53 -year -old famous mayor, who won his land representative in the local elections in the spring of 2024, was seen as Erdogan’s most dangerous competitor to the Turkish presidency. CHP was to hold initial elections on March 23, as Imamoglu was expected to appear widely as a group presidential candidate.

Critics of arrests say it has made clear a violation of democracy so far by the Erdogan government.

“Türkiye was already a decline, but this is a political fall,” Arda Tunca, economist and advisor to Istanbul, told CNBC. “Today is history and after a new one in Türkiye’s secession from democracy.”

Fears of stability and economic security in Turkey may harm the financial flows while the investor’s confidence in the country is already fragile – and after the country’s monetary policy makers spent nearly two years they are working to operate the inflation situation in Turkey, the economists rule.

“The fears of the rule of law will continue although this will likely continue, and it is likely to harm the long -term foreign investment flows – it is already low – unless the AKP administration is able to produce a convincing issue against Imamuglu,” wrote Timothy Ash, a strategic expert on emerging markets at Bluebay Asset Management, on Wednesday.

Inflation in Türkiye is still high – with 39.05 % in February – a major attached point plans for the Republican Party in its campaign against Erdogan. The continued sale of the investor from Lira can lead to deep inflation, forcing the Turkish Central Bank to raise interest rates, which are currently 42.5 %.

“Development will knock on the confidence of the investor and the learated, and this will lead to an increase in inflation back,” George Dyson, chief analyst and specialist of Turkey in the risk of control, told CNBC. However, Dyson and other analysts do not expect the central bank to abandon economic Orthodox and reduce cut rates. Instead, they may be a new price increase, if the weakness of Lira is getting worse, as the bank’s laser concentration was on controlling inflation.

The upcoming presidential elections in Türkiye are scheduled to take place in 2028, but parliament is expected to call for an early vote, when IMAMOGLU – which will easily defeat Erdogan to defeat Erdogan easily.

“The opinion polls that were presented to Erdogan showed that, even with his advantages, his preoccupation and full control of institutions and media, he defeated him – on wide margins – in a presidential vote,” wrote Soner Cagaptay, the Turkish historian and his colleague at the Washington Institute, on a platform on social media.

This is why Erdogan chooses the nuclear option [against] Imamoglu.

However, modern geopolitical developments have strengthened Erdogan’s hand when it comes to facing international consequences. Some political analysts have argued that US President Donald Trump’s return to the White House encouraged leaders in other countries to boast democratic standards.

“One of the reasonable explanations because they are now doing this away from the elections is that the Turkish government feels safely safe.” “The United States indicates that it will not mind these types of measures and the European Union needs Turkey in Ukraine and Syria, and therefore the Turkish government benefits from the moment they expect the minimum international reaction.”