Turkey bans short selling on Istanbul Stock Exchange

Turkey’s Capital Markets Board has banned short selling on the Istanbul Stock Exchange for one month. This decision comes as part of a series of measures aimed at stabilizing the market. The board also eased requirements for equity ratios in credit transactions and lifted limits on share buybacks for listed companies. The Central Bank of Turkey, led by its governor, emphasized a commitment to market-friendly actions during a recent meeting with bank executives. The central bank stated it is prepared to take necessary steps within market regulations. This meeting happened shortly after Istanbul Mayor Ekrem Imamoglu was jailed on corruption charges, causing a sharp drop in Turkish assets. Turkey is facing significant economic and political challenges. There is a growing cost-of-living crisis, a declining lira, and high inflation, officially reported at over 60%. These factors have reduced household purchasing power. Former policies by President Erdoğan, which kept interest rates low despite inflation, contributed to the crisis. However, the government has begun shifting to a tighter monetary policy. Concerns continue to rise over political freedom and judicial independence under Erdoğan’s long leadership. The mix of economic difficulties and political unrest has led to increasing dissatisfaction among citizens, while international investors remain cautious.