Turkey's market regulator is ordering the liquidation of several funds run by seven investment firms, including Tera Portfoy and Pusula Portfoy. The watchdog filed criminal complaints against dozens of individuals for alleged share-price manipulation and imposed trading bans to stabilize the financial system. These measures follow a failure by one asset manager to meet redemption requests, which triggered a market-wide circuit breaker and the worst 2 day drop in the BIST 100 index since March 2025.

The Turkish lira reached a record low of 49.65 per dollar, falling more than 17% this year. In response to the resulting liquidity crunch, the government boosted interbank borrowing limits for lenders 10-fold. The country's 10 year bond yield rose above 32.6% during the selloff, while inflation remains near 31% despite a 37% central bank policy rate.