Turkey’s main opposition party declared it will resist an appeals court ruling that annulled its 2023 congress and ousted its current leader, triggering a political crisis that sent the Turkish lira to a record low and forced the central bank to sell billions of dollars in reserves. The Republican People’s Party, known as CHP, condemned the decision issued Thursday as a judicial coup.
The ruling reinstated former chairman Kemal Kilicdaroglu as party leader, removing Ozgur Ozel from the position he had held since the 2023 congress. The CHP immediately appealed the decision to Turkey’s Supreme Election Board, known as the YSK, which convened on Friday to discuss the application.
Main Developments in the Turkish Political Crisis
The appeals court issued its ruling on Thursday, May 21, 2026, declaring the CHP’s 2023 congress invalid. The decision effectively reversed the party’s leadership structure by reinstating Kilicdaroglu, who had previously led the party before being replaced by Ozel at that congress.
The CHP characterized the court’s action as a judicial coup, representing an extraordinary intervention into the internal affairs of a major political party. Political scientist Berk Esen of Sabanci University described the situation as unprecedented in Turkish history.
“The court move marks an unprecedented development in our administrative law and political history. If upheld, it would open the door for courts to determine party leadership, with no comparable example in Turkey’s electoral system since 1946,” Esen said.
The crisis comes as the CHP has been running roughly even with President Recep Tayyip Erdogan’s AKP party in polls. Erdogan has ruled Turkey for 23 years, and the next national election is scheduled for 2028. The 72-year-old president faces a situation where this political turmoil could affect the timing of future elections.
What We Know So Far
The court ruling on Thursday annulled the CHP’s 2023 congress and reinstated Kemal Kilicdaroglu as party chairman. The CHP has appealed to the Supreme Election Board, which met on Friday, May 22, 2026, to review the party’s application. No decision from the YSK has been announced yet.
The political crisis has had immediate economic consequences. The Turkish lira touched a record low following the court decision. The central bank responded by selling billions of dollars in foreign reserves to stabilize the currency.
Roger Mark, an emerging market fixed income analyst at Ninety One, warned about the financial implications. “The key risk is local dollarisation,” Mark said, highlighting concerns about Turkish citizens converting their savings from lira to dollars.
Turkey’s economy was already under pressure before this political crisis, with inflation above 32 percent last month.
Background on Opposition Party Crackdown
The court ruling comes amid a broader legal crackdown on the CHP that began in 2024. Hundreds of CHP members and elected officials have been detained since then. Istanbul Mayor Ekrem Imamoglu, who had emerged as the CHP’s presidential candidate, is currently jailed.
The opposition party has faced mounting pressure through the judicial system, with the latest court decision representing a significant escalation that directly targets the party’s leadership structure rather than individual members.
Vice President Cevdet Yilmaz has been involved in government communications during the crisis, though the government has denied using courts against political rivals.
What Happens Next
The immediate focus is on the Supreme Election Board’s decision regarding the CHP’s appeal. The YSK convened on Friday to discuss the application, but no ruling has been announced. The board’s decision will determine whether the appeals court ruling stands or is overturned.
If the ruling is upheld, courts would gain the ability to determine political party leadership in Turkey, setting a precedent with no comparable example since 1946, according to political analyst Berk Esen.
The crisis could have implications for the timing of future elections. With the next national election scheduled for 2028 and Erdogan’s 23-year rule potentially affected by term limits, the political landscape remains uncertain.
Economic Impact and Market Response
Financial markets reacted immediately to the political turmoil. The Turkish lira fell to a record low against major currencies, reflecting investor concerns about political stability in the country.
The central bank intervened by selling billions of dollars in foreign currency reserves to defend the lira. The exact amount of reserves sold has not been disclosed.
The economic situation is compounded by Turkey’s existing inflation problem. Consumer prices rose above 32 percent last month, creating additional pressure on Turkish households already dealing with a cost-of-living crisis.
Analysts have expressed concern about potential dollarisation, where Turkish citizens and businesses shift their holdings from lira to dollars as a hedge against currency instability and inflation.
Important Details About the CHP
The CHP is Turkey’s oldest political party, founded by Mustafa Kemal Ataturk, the founder of modern Turkey. It represents the main opposition to Erdogan’s ruling AKP party and has been gaining ground in recent polls.
The party has faced significant challenges in recent years, with its leadership and members targeted through legal proceedings. The detention of Istanbul Mayor Ekrem Imamoglu removed a prominent figure who had emerged as a potential presidential challenger to Erdogan.
Ozgur Ozel took over leadership of the party at the 2023 congress that has now been annulled. Kemal Kilicdaroglu, who previously led the party, has been reinstated by the court ruling, though the CHP does not recognize this change and continues to support Ozel as its leader.
Frequently Asked Questions
What did the Turkish court rule about the CHP?
The appeals court on Thursday annulled the CHP’s 2023 congress and reinstated former chairman Kemal Kilicdaroglu, effectively removing current leader Ozgur Ozel. The CHP has appealed this decision to the Supreme Election Board.
Why did the Turkish lira fall to a record low?
The currency dropped following the court ruling against the opposition party, which created political uncertainty. The central bank sold billions of dollars in reserves to stabilize the lira, and Turkey is already dealing with inflation above 32 percent.
When is Turkey’s next national election?
Turkey’s next national election is scheduled for 2028. However, the current political crisis could potentially affect the timing of future elections, given the unprecedented nature of the court intervention in party leadership.
What is the Supreme Election Board reviewing?
The YSK convened on Friday to discuss the CHP’s application appealing the court ruling. The board has not yet announced a decision on whether to uphold or overturn the appeals court ruling that annulled the party congress.
Ongoing Developments
The situation in Turkey remains fluid as the CHP awaits the Supreme Election Board’s decision on its appeal. The party has vowed to resist the court ruling, characterizing it as an attack on democratic processes.
Market observers continue to monitor the economic fallout, with concerns about further currency instability and the potential for increased dollarisation if the political crisis persists.
The outcome of this dispute could have lasting implications for Turkish politics and the balance of power between the ruling party and opposition ahead of the 2028 elections.
