TURKEY: FX-Protected Lira Deposit’s End & more – 26th Aug 2025

Merhaba from Keswick Village! This is the Rorshok Turkey Update from the 26th of August twenty twenty-five. A quick summary of what's going down in Turkey.

On Saturday the 23rd, Turkey ended its controversial FX-protected lira deposit scheme. The program began in twenty twenty-one to slow the sharp fall of the Turkish lira, but it grew into a heavy burden as the state had to cover exchange rate differences. By closing it, the government wants to cut costs and ease pressure on public finances.

Here’s how the program worked: people could deposit money in a lira account, and if the lira lost value against the dollar, the central bank would pay the difference, so savers always earned as if the lira had stayed strong. The program reached a peak of 140 billion dollars but now holds just eleven billion.

On the following day, youth activists from the main opposition, the Republican People’s Party or CHP, marched 490 kilometers, about 300 miles, from Adana in the south to the border of central Ankara province as a protest against government crackdowns on CHP-run municipalities.

Ferhat Narbunoğlu, the CHP Sarıçam Youth Branch President, said it is the longest political march in Turkish history and promised they will continue walking until justice and freedom arrive. Serhat Toprakaltı, another CHP Youth Branch President, explained that the march highlights the struggles of imprisoned CHP mayors, children going hungry, unemployed teachers, unpaid retirees, farmers, and anyone seeking justice.

The demonstrators said the march was tiring but said the support and hospitality along the route gave them energy. They are marching towards Silivri Prison in İstanbul from Ankara now and will arrive there in around a month.

Meanwhile, on Wednesday the 20th, President Erdoğan told Vladimir Putin that Turkey supports a permanent, inclusive peace process in Ukraine, one that brings all parties to the negotiating table. Two days later, government officials emphasized that a ceasefire must be in place before Turkey can consider any peacekeeping mission or security guarantees for Ukraine.

Turkey has already played a key role in past efforts, most notably brokering the Black Sea grain deal that allowed Ukrainian exports to continue despite the war

In other international news, on Monday the 25th, senior Turkish military officials met with leaders of the Libyan National Army in Benghazi during a port visit by a Turkish warship, marking a rare engagement with eastern Libya. They discussed cooperation under the One Libya One Army project, which aims to unify Libya’s divided military forces.

Since the fall of Muammar Gaddafi in twenty eleven, Libya has been split between the UN-recognized government in Tripoli and the Libyan National Army controlling the east. Turkey has backed Tripoli militarily since twenty nineteen but has recently improved ties with the east as tensions eased. The visit coincided with the reopening of Turkey’s consulate in Benghazi and the resumption of Turkish Airlines flights, signaling Ankara’s cautious but growing diplomatic and military engagement across the country.

On Friday the 22nd, Turkey kicked off construction on a railway linking the southern city of Kars with Azerbaijan’s Nakhchivan via the Dilucu crossing. Abdulkadir Uraloğlu, the Transport Minister, said the line will handle up to five million passengers and fifteen million tons of cargo annually, reducing travel time between Kars and Nakhchivan by approximately an hour and twenty-five minutes.

This project is part of the broader Southern Caucasus transit corridor. The US has secured exclusive development rights for the corridor, which will facilitate trade, energy transit, and regional connectivity, including rail lines, oil and gas pipelines, and fiber optic cables. The Minister emphasized that the railway will strengthen economic ties between Turkey, Azerbaijan, and Armenia, contributing to regional peace and stability.

Since we mentioned the transport minister, on Friday the 22nd, he shared a video on social media showcasing his high-speed drive on the Ankara-Niğde motorway. In the footage, Uraloğlu is driving at speeds up to 224 km (about 140 miles) per hour, well above the national speed limit of 140 km (around eighty-seven miles) per hour.

The video, accompanied by Turkish folk music, was intended to highlight the motorway's features. However, it sparked backlash online, with many criticizing the minister for promoting unsafe driving practices. Uraloğlu later said that sharing the video was like turning himself in for speeding.

He explained that the highway gendarmerie had fined him and insisted that speed limits apply to everyone. He also promised to be more careful, though the incident has reignited discussions about road safety and the responsibilities of public officials in setting examples for the public.

Also on Friday, lawyer Ersan Barkın, known for representing Sedat Peker, a whistleblower against the current government and a feared criminal figure, took over the case of fourteen-year-old Mattia Ahmet Minguzzi. Earlier this year, a minor fatally stabbed him during a dispute at a flea market. The incident has sparked widespread public outrage and media coverage. Barkın replaced Rezan Epözdemir, arrested earlier this month for facilitating bribery.

The family faced harassment, including threatening messages from friends and relatives of Mattia’s killer. After Barkın’s involvement, reports suggest that online threats stopped, and the perpetrators deactivated their accounts in fear of retaliation. The trial continues at the Istanbul Children’s Heavy Criminal Court, drawing public attention to youth violence.

On Thursday the 21st, Turkish port authorities began informally requiring ship agents to certify that vessels had no links to Israel or were not carrying hazardous cargo destined for Israel. The move follows last year’s decision to freeze trade with the country over Gaza-related tensions.

Even though the restrictions are informal, they appear to respond to months of public criticism accusing the government of not doing enough to enforce the freeze.

Despite the official decision, the government received criticism because, even though it publicly opposes Israel, it continues to trade and maintains economic links with the country.

On another note, on Friday the 22nd, Turkey’s tourism reports showed a 5% drop in foreign visitors in July compared to the same month last year, falling to below seven million. Visitor numbers from Germany, Russia, the UK, Poland, and the Netherlands declined noticeably. The main reason for the drop seems to be rising prices.

Even though the lira has lost value against the dollar, Turkey is not an affordable destination for foreign tourists. In fact, it’s more expensive than the Greek islands and other Mediterranean destinations.

On Sunday the 24th, officials in the northwestern Düzce announced that they had launched an investigation into a controversial set of school rules at Turgut Özal Anatolian High School. The school had circulated an eighteen-point list for new students that went beyond national education guidelines. Among the rules was a line barring female students from sitting in the front seat of school buses.

Parents and students criticized the list for encouraging gender discrimination. The governor’s office stepped in, saying some rules may have been made to ensure respect and prevent misunderstandings, but that they crossed the line and caused public concern. Authorities stressed that no policy harming students or creating inequality would ever be allowed, and promised a safe, respectful learning environment.

On Friday the 22nd, the Ankara 4th Criminal Court of Peace ordered a block on the live video chat app Azar, shutting down its azarlive.com domain. The court gave no official reason, but reports link the decision to concerns about inappropriate content and minors using the app. Azar is the latest app to face restrictions, following earlier bans on Discord, Wattpad, and Roblox.

Finally, the southern city of Kahramanmaraş, known for its resistance against French forces during the War of Independence, is creating one of Turkey’s largest flag symbols. Local authorities in the Onikişubat district launched a project to paint a Turkish flag spanning 40,000 m², about 430,600 ft², alongside a 6,000 m², about 64,600 ft², rendering of the Medal of Independence, which the parliament awarded to the city in nineteen twenty-five.

The city mayor said the flag will be visible from nearly everywhere and illuminated at night. The project aims to leave a lasting symbol of pride across the mountains that frame the city.

Aaand that’s it for this week! Thank you for joining us!

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