Part 4/7:
The response to Imamoğlu's arrest was swift and severe. Foreign investors, who had just begun to regain their confidence in Turkey after a prolonged economic crisis, withdrew their capital, leading to a sharp decline in the Turkish lira. From a rate of 36 to the dollar, the lira plummeted to an all-time low of 38 to the dollar. The Turkish central bank had to intervene substantially to stabilize the currency. This depreciation threatens to reignite inflation, which is still running over 40% year-over-year despite recent declines.