Emergency meeting held by economic management under Mehmet Şimşek

The sharp volatility in the markets and the tremors following the historic decision have brought extraordinary measures to the agenda of the economic management. The Financial Stability Committee, which met at 08:30 in the morning under the chairmanship of Minister of Treasury and Finance Mehmet Şimşek, evaluated the recent developments in the Turkish financial system and the urgent steps that need to be taken.

SHARP SELL-OFF AND CIRCUIT BREAKER IN BORSA ISTANBUL

The "absolute nullity" decision by the Ankara Regional Court of Justice 36th Civil Chamber regarding the Republican People's Party's (CHP) 38th Ordinary Convention and the Istanbul Provincial Congress created sudden and intense pressure on the markets. Following this development, selling accelerated on Borsa Istanbul, and the BIST 100 index ended the day with a loss exceeding 6 percent. Due to the volatility, the circuit breaker system was activated, and trading was temporarily suspended.

While the banking index was the sector with the highest loss at 8.63 percent, the holding index also declined by over 6 percent. Not only banking and holding stocks, but all sector indices closed the day in the negative. The daily trading volume was recorded at 163.2 billion TL.

Following the sharp losses in the markets, domestic sources claimed that public banks sold approximately 6 billion dollars in foreign currency. It is stated that these interventions took place especially in the morning hours when the fluctuation increased after the decision. Abroad, the iShares MSCI Turkey ETF, which provides investment opportunities in Turkish markets, lost approximately 10 percent of its value.

FINANCIAL STABILITY COMMITTEE FOCUSED ON THE AGENDA

At the Financial Stability Committee meeting, the effects of the market volatility on the economy and the financial system were discussed in detail. The economic management discussed additional measures that could be taken to ensure the active, healthy, and uninterrupted functioning of the markets. It was reported that a statement regarding the meeting would be shared with the public.

The court in Ankara declared the CHP's 38th Ordinary Convention and the Istanbul Provincial Congress invalid on the grounds of "absolute nullity." According to this decision, the current Chairman Özgür Özel and the headquarters administration were removed from their duties as a precautionary measure. The appellate court re-examined the previously rejected case and accepted the applications.

According to the details reflected in the case file, it was decided that the convention held on November 4-5, 2023, was legally invalid and that all ordinary and extraordinary conventions after this date were also cancelled. Conversely, it was ruled that the party's former chairman Kemal Kılıçdaroğlu and the previous party administration should continue their duties.

News Source: 12punto