FX.co ★ Turkish Lira Steadies

The Turkish lira remained near its record lows of 41.2 per USD in mid-September, following a court's decision to postpone a ruling on the leadership of the primary opposition party, the Republican People's Party, until October 24. This case involves alleged irregularities in the party’s 2023 congress and the ousting of its elected officials, originally slated for resolution on September 15. The delay offered investors a temporary sense of relief regarding political instability, with a notable recovery led by banking stocks, which were among those most impacted. In a related development, numerous members of the CHP, including Istanbul Mayor Ekrem Imamoglu, a key political adversary of President Erdogan, continue to be detained as they await trial in a comprehensive investigation concerning alleged corruption and links to terrorism. In monetary policy, the Central Bank of Turkey reduced its benchmark one-week repo rate by 250 basis points in September, bringing it to 40.5%, slightly below the anticipated 41%. Meanwhile, annual inflation decreased to 32.95% in August, and the GDP grew by 4.8% year-on-year in the second quarter of 2025.