22.05.2026 09:00
Following the 'absolute nullity' ruling regarding the CHP congress, a sharp sell-off wave hit the markets. The decline at Borsa Istanbul exceeded 6%, triggering the circuit breaker system. While banking stocks suffered major losses, Bloomberg reported that public banks sold approximately $6 billion in foreign currency. Following these developments, the Financial Stability Committee convened an extraordinary meeting chaired by Treasury and Finance Minister Mehmet Şimşek.
The severe fluctuation in markets following the “absolute nullity” decision regarding the CHP congress alarmed the economic administration. The Financial Stability Committee held an extraordinary meeting under the chairmanship of Treasury and Finance Minister Mehmet Şimşek.
The meeting discussed the effects of recent developments in financial markets on the economy and steps that could be taken to reduce market volatility. Authorities reported that new measures are being evaluated to ensure the “effective, healthy, and uninterrupted functioning” of the markets.
CIRCUIT BREAKER ACTIVATED IN BORSA ISTANBUL
A sharp selling pressure occurred in Borsa Istanbul following the decision. The BIST 100 index ended the day with a loss of over 6 percent, triggering the circuit breaker system. Daily trading volume reached 163.2 billion liras, with the biggest losses seen in banking stocks.
The banking index fell by 8.63 percent, while the holding index lost 6.07 percent. All sector indices closed the day in negative territory.
BLOOMBERG: $6 BILLION INTERVENTION
In a report based on market sources, Bloomberg claimed that public banks sold approximately $6 billion worth of foreign currency. It was stated that most of the intervention occurred immediately after the decision was announced.
It was also reported that the iShares MSCI Turkey ETF, which trades in the US and offers investment opportunities in Turkish markets, lost approximately 10 percent in value.
COURT DECISION SHAKES MARKETS
The 36th Civil Chamber of the Ankara Regional Court of Appeal annulled the CHP's 38th Ordinary Congress and the Istanbul Provincial Congress on the grounds of “absolute nullity.” The court ruled that current Chairman Özgür Özel and the party leadership should be temporarily suspended from duty, while Kemal Kılıçdaroğlu and the previous party leadership should continue their duties. The decision caused strong repercussions not only in politics but also in the markets.