The Istanbul Stock Exchange (BIST) suspended trading due to a drop in quotes amid the collapse of the Turkish lira exchange rate, the site said on the information disclosure website (KAP).
“The market circuit breaker tripped at 4:24:28 PM. Trade is temporarily suspended under contracts on the stock market, indices on the derivatives market and on the repo market with debt securities and shares, ”it was reported. After that, at 17:50, trading recovered.
The BIST 100 Borsa Istanbul index dropped 200 points during the hour today, after which the switch was triggered. On the whole, the index fell 9% to 2.073.55 over the day. This happened against the background of a record reduction in the price of the Turkish lira. So, on December 17, the country’s currency fell in price to 17 lira per dollar.
Lira continues to weaken rapidly against the backdrop of the policy of the country’s Central Bank. Yesterday, the regulator cut its key interest rate for the fourth time in a row – to 14%. At the same time, high inflation is observed in Turkey: in November it amounted to 21.3% in annual terms.
Earlier, the Arab News newspaper noted that the new head of the Turkish Central Bank, Shahap Kavcioglu, supports the theory of President Recep Tayyip Erdogan that an increase in the key rate accelerates inflation. At the same time, most modern economists adhere to the opposite point of view. The former head of the Central Bank, Naji Agbala, was fired after he raised the interest rate to 19% in March.
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