Turkish Stocks Explode 2.34% in Single-Day Rally as Central Bank Starts Printing Money for Investors

Turkey’s stock market is smashing records, driven not by booming factories but by a desperate central bank that is now directly fueling the rally.

The benchmark BIST 100 index has seen a series of sharp gains, jumping over 1% in a single session [128734] and surging by a massive 2.34% on another day [71758]. The index opened higher multiple times this week, gaining as many as 99.1 points at the bell [110976] and rising again in Thursday trading [8749].

This defiance of gravity has a concrete, if controversial, driver. The Central Bank of the Republic of Turkey announced a new funding strategy that offers cheaper financing to banks that increase their purchases of domestic stocks [80220]. This policy directly channels cheap money into the stock market, propping up prices. The moves follow a period of extreme volatility, during which the market plunged amid a global sell-off [33252] and dropped sharply on a Tuesday session [12525].

The rally isn't isolated. Analysts point to a global phenomenon where a massive pool of savings is forced into a shrinking number of big assets, creating a "captive inflow" that keeps prices high regardless of economic reality [132688]. In Turkey, that mechanism is now explicit. The central bank is no longer just a watcher of the market; it is an active buyer through the banking system [80220]. The result is a market that keeps climbing while the real economy faces persistent challenges.