22.05.2026 10:20
Following the "absolute nullity" decision regarding the CHP congress, a sharp wave of selling occurred in the markets. The decline at Borsa Istanbul exceeded 6 percent, triggering the circuit breaker system. Following the developments, the Financial Stability Committee held an extraordinary meeting under the chairmanship of Treasury and Finance Minister Mehmet Şimşek. In the report published after the meeting, it was stated that "Turkey's economy is considered to be significantly resilient against shocks."
The sharp volatility in markets following the 'absolute nullity' decision regarding the CHP congress alarmed the economic administration. The Financial Stability Committee convened an extraordinary meeting under the chairmanship of Treasury and Finance Minister Mehmet Şimşek.
The meeting discussed the impact of recent developments in financial markets on the economy and the steps that could be taken to reduce market volatility.
REPORT RELEASED AFTER EXTRAORDINARY MEETING
In the report published after the summit, the following statements were included: 'The Financial Stability Committee convened on May 22, 2026, under the chairmanship of our Minister of Treasury and Finance, Mr. Mehmet Şimşek. The meeting comprehensively addressed the potential impacts of domestic and international developments on financial markets and the measures that could be taken.
'ALL NECESSARY STEPS WILL BE TAKEN IN COORDINATION'
The Committee assessed that the Turkish economy is significantly resilient to shocks thanks to its sound policy framework and strong capital buffers.
It was decided that all necessary steps will be taken in full coordination to maintain macro-financial stability, ensure the uninterrupted continuation of the disinflation process, and sustain the healthy functioning of the financial system. The Committee will continue to monitor all developments instantaneously and closely.'
CIRCUIT BREAKER ACTIVATED AT BORSA ISTANBUL
Following the 'absolute nullity' decision, a severe selling pressure emerged at Borsa Istanbul. The BIST 100 index closed the day with a loss of over 6 percent, triggering the circuit breaker system due to the decline. Daily trading volume reached 163.2 billion liras, with the greatest losses experienced 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 state-owned banks sold approximately $6 billion worth of foreign currency. It was stated that the majority of the intervention occurred immediately after the decision was announced. It was also reported that the iShares MSCI Turkey ETF, which trades in the U.S. and offers investment opportunities in Turkish markets, lost approximately 10 percent of its value.
COURT DECISION SHAKES MARKETS
The 36th Civil Chamber of the Ankara Regional Court of Appeals annulled the CHP's 38th Ordinary Congress and the Istanbul Provincial Congress on the grounds of 'absolute nullity'. The court ruled for the interim suspension of current Chairman Özgür Özel and the party administration, while deciding that Kemal Kılıçdaroğlu and the previous party administration should continue their duties. The decision had severe repercussions in both politics and markets.