Political Turmoil and a Collapsing Currency: Turkey Faces Deepening Crisis

The recent arrest of key opposition figures, including the mayor of Istanbul, has intensified international concern about Turkey’s political trajectory. This wave of repression has reignited instability in financial markets, further accelerating the depreciation of the Turkish lira.

A Growing Climate of Political Tension

Turkey is in the midst of an institutional crisis. The detention of opposition leaders has been widely condemned by international organizations, which see these actions as a weakening of the rule of law and democracy. The growing concentration of power around President Recep Tayyip Erdoğan has sparked distrust both domestically and abroad.

Direct Impact on the Lira

The Turkish lira has plummeted in response to recent political developments. As political repression deepens, foreign investors are withdrawing capital, and markets are reacting with fear. The currency has hit record lows against the U.S. dollar and other major currencies.

Institutional Insecurity and Questionable Economic Policies

Beyond the political landscape, economic decisions continue to fuel uncertainty. The central bank, heavily influenced by the executive branch, has kept interest rates low despite rampant inflation. This lack of institutional independence is exacerbating the country’s economic crisis.

Real-Time Devaluation

In 2020, one Turkish lira was worth around 0.17 USD. As of March 2025, that figure has fallen below 0.03 USD. Practically speaking, 100 Turkish lira now represents only a fraction of its former value, hurting citizens’ purchasing power and international currency conversions.

Tourism, Trade, and Conversions: “Lira to Mexican Peso”

Searches for terms like “how much is a Turkish lira worth” or “100 lira to Mexican pesos” have surged, especially among travelers and merchants. While other emerging market currencies are also facing challenges, the lira has become one of the most volatile in the world.

Domestic Consequences

Inflation has made basic goods more expensive, and wages have failed to keep pace with rising prices. Turkish citizens are living in growing economic uncertainty, while access to imported goods has become increasingly difficult and expensive.

Is There a Way Out?

Overcoming this crisis will require drastic change: restoring judicial independence, halting political repression, and reforming monetary policy. Without these steps, market confidence—and public trust—will continue to deteriorate.

The Role of the International Community

International pressure and technical support could play a key role. Institutions like the IMF could offer assistance if Turkey commits to democratic and economic reforms.

More Than a Falling Currency

The combination of political repression and erratic economic decisions has plunged Turkey into one of its deepest crises in decades. The lira’s collapse is a visible symptom of a broader problem: the erosion of democratic institutions. Unless the political root of the problem is addressed, both the value of the currency—and the country’s stability—will remain at risk.