Turkish state lenders poured $6 billion into the foreign‑exchange market Thursday, a move aimed at stabilising the lira after a sudden court ruling. The decision stripped the opposition party of its leadership, sparking political uncertainty that traders feared would erode confidence in the currency. Within hours, market volatility spiked, with the lira slipping 1.2% against the dollar.

The intervention followed a court order that dissolved the opposition party’s leadership, a development that could trigger a power struggle in Ankara. Investors reacted by tightening risk‑off positions, sending corporate bonds and equities lower. The central bank’s rapid response underscored Ankara’s reliance on state‑backed liquidity to curb currency swings. Ankara’s currency policy remains under scrutiny as political shifts ripple through markets and global investors.

The $6 billion sale represents the largest single intervention by Turkey in recent months, a figure that signals the severity of the lira’s pressure. Analysts note that such interventions, while temporarily soothing, may erode long‑term confidence if the underlying political instability persists and could prompt further central bank action to stabilize the currency and reassure investors.

For investors, the episode highlights the lira’s vulnerability to domestic politics. Treasury managers should monitor upcoming court rulings and political developments, as they may trigger additional liquidity injections or force the central bank to adjust its policy stance. Short‑term market swings are likely to continue until political certainty returns and could affect bond yields worldwide.