It fell 16 percent in a day … Erdogan’s interventions are dropping in the lira

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It was set Shehab Kocioglu, Former Banker and Member of Parliament for Justice and Development Party Governor, the third time that Erdogan abruptly fired the bank governor since mid-2019.

Gojioglu sought to assuage concerns, in a 90-minute call with bank chiefs, and a source said he had informed them that he was not planning to make a sudden change.

Goldman Sachs and others expected a major decline in the lira when the money markets begin trading on Monday.

The pound fell by more than 16 percent to 8.4 against the dollar, compared to 7.2185 on Friday, approaching its levels in early November, when it hit a record high of $ 8.58.

Erdogan fired the former governor Naji Iqbal Suddenly in the early hours of Saturday morning, two days after a sharp interest rate hike, aimed at halting the decline of the lira and countering inflation, which approached 16 percent.

Iqbal took office less than 5 months ago, raising the key interest rate by 875 basis points to 19 percent, the highest rate in any major economy, and winning praise from analysts who said it strengthened the central bank’s credibility.

The source familiar with the call said that Kocioglu told bankers in his call that any change in policy would depend on reducing inflation, which he described as his primary goal, and quoted the new governor as saying that the current approach would continue.







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