[REVISION HISTORY]

Turkish financial market stability and ministerial scrutiny

Updated 3 times since CLSTR started tracking revisions of this situation.

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2026-09-29 11:37 UTC → 2026-09-29 12:52 UTC · added ~~removed~~

Turkish Treasury and Finance Minister Mehmet Şimşek and the Ministry of Treasury and Finance issued denials regarding rumors of his resignation and allegations of improper business ties with a brokerage firm. The Ministry stated that Şimşek has no commercial relationships with the firm’s owners, and the Presidency’s Directorate for Combating Disinformation announced legal action against those spreading content intended to “manipulate financial markets and public opinion.” Addressing the ongoing investigation into market-distorting fund activities, Şimşek emphasized that the government’s priority is to protect the “investment, employment, production, and export capacity of the real sector.” He clarified that while legal proceedings target those involved in market manipulation, no actions will be taken against unrelated individuals or companies. Şimşek noted that the Ministry is coordinating with the Ministry of Justice to safeguard the rights of legitimate investors and will provide necessary market liquidity to prevent negative impacts on the real economy. President Recep Tayyip Erdoğan confirmed that the fund issue was discussed in a Cabinet meeting, asserting that the problem is limited to a small segment of the fund market and does not pose a systemic risk to the Turkish financial system. He vowed to take action against anyone harming citizens through market manipulation or corruption. Concurrently, the Central Bank of the Republic of Turkey (TCMB) is implementing new regulations for its foreign currency conversion support program, effective October 1. The updated framework removes the previous requirement for a ‘no foreign currency purchase’ commitment to make the mechanism more inclusive. Under the new rules, companies receiving support must ensure their liquid foreign currency assets do not exceed 10 percent of their total assets or net sales revenue, with support being linked to a firm’s value added to encourage more effective use of foreign currency earnings. As market volatility persists following the fund investigations, Hedef Holding has announced a default on approximately 1.1 billion TL in debt. The company attributed the default to liquidity challenges stemming from the liquidation of several investment funds and asset freezes placed on its majority shareholder due to the ongoing investigation.

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