Turkish lira plunges after Erdogan sacked central bank officials

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In the early hours of Thursday, Turkish President Recep Tayyip Erdogan issued a decision to dismiss 3 central bank officials and appoint two others.

The exemption decision, which was published in the Official Gazette, concerns the two Vice President of the Central Bank, Semih Toman, Ugur Namik Kocek, and a member of the Monetary Policy Council, Abdullah Yavas, less than 5 months after his appointment to this position.

Turkish lira

Turkish lira

The decision also included the appointment of “Taha Chanak” as Vice President of the Central Bank, and “Youssef Tuna” as a member of the Monetary Policy Council.

The decision follows an important meeting held by President Erdogan with the Governor of the Central Bank of Turkey, Shehab Kavcioglu, in the capital, Ankara, on Thursday night.

As a result of this decision, Turkish lira depreciation To its lowest level, breaking a new record for the third time in a row today, exceeding 9.18 pounds per US dollar.

The central bank last month cut the key interest rate to 18 percent from 19 percent, despite annual inflation rising to around 20 percent, in a move analysts saw as fresh evidence of political interference from Erdogan, who describes himself as an “enemy of interest rates”.

The Central Bank’s Monetary Policy Committee will hold its next meeting on October 21.



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