Political and financial unrest that dominate Turkey, risking economic stabilization plans

More than 1,100 people have been arrested in Turkish protests throughout the country since the demonstrations began on March 19, the Turkish authorities said on Monday, as political and economic instability attract a nation of 85 million after last week’s arrest of the Mayor of Istanbul Ekrem Imamglu.

What is coming to Turkey is very uncertain, but analysts expect an extended period of volatility for the Turkish lyre and foreign reserves through which the country will need to burn to keep it on the surface.

Central Bank officials spent $ 12 billion last week in foreign reserves to support Lira, reported the Financial Times From March 21, after the currency hit a record level of more than $ 40 to a dollar. The markets initially fell to the news of the arrest, and Turkey banned short sales and relaxed redemption rules on Sunday in an effort to make more storage.

“The protests indicate the most significant and widespread reaction to the public in more than decades, which makes it difficult to travel the event,” wrote Wolfango Piccoli, a co -president at Teno’s advisory company on Monday.

“What is obvious, even in this early stage, is that political uncertainty is far from the end,” he said. “Once again, President Erdogan’s political agenda has caused serious damage to Turkey’s economic prospects.”

Widely considered the strongest political rival of Turkish President Recep Tayyip Erdogan, Imamoglu was arrested for the number of corruption just days before it was expected to be nominated for his presidency party candidate. He and his supporters reject the accusations, saying they were politically motivated.

Meanwhile, Erdogan’s wider suppression of opposition activity is intensified. Since we have a detention, Turkey has imposed the restrictions on Istanbul’s journey to suppress protests, close bridges and access the Internet approach, and Turkish state media does not recognize protests in their reporting.

Arda Tunca, an independent economist and advisor based in Istanbul, told the CNBC that the country approaches the point without a return.

“Turkey is on the verge of becoming a dictatorship. The reaction of people to what is happening from March 18 will determine the fate of the future of the country,” Tunca said. “No leader, democratically or not, can silence the will of people sooner or later.”

Erdogan, for his part, abused protesters, saying on the weekend that his government would not “surrender” vandalism “or” street terror “ahead of the more planned demonstrations, Reuters states.