The Turkish economy has suffered a major blow as they halted trades on all listed stocks on 17 September as Borsa Istanbul, the sole exchange entity of Turkey, suffered losses of seven percent in their primary index (100 indexes). According to the article, trading of equities, equity derivatives, and debt repo transactions was halted two times within one hour as the index fell 7 percent, triggering a market-wide circuit breaker. Upon resuming, it fell as much as 9.1 percent within the first two minutes of operation. The increased panic in the market as shares began to lose value caused a high degree of damage to the economy of the country. The decline of the Lira, which has fallen 37 percent against the value of the dollar, has made Borsa Istanbul’s main index one of the worst-performing equity markets in the world. The president of the country has advised for cuts in borrowing cuts but has faced many complaints from industrialists who are being negatively affected by the current volatility. Richard Seagal, an analyst from Ambrosia Capital in London suggests that the recent crash is different from previous ones due to the current volatility of the exchange rate as the Lira approaches rates. The real reason behind the recent crisis is linked to the previous insistence of the Turkish president on lowering interest rates as inflation levels increase in the country.
Source: https://www.aljazeera.com/economy/2021/12/17/turkey-stock-trading-halted-twice-as-lira-crashes-to-new-low
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