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Turkish President Recep Tayyip Erdogan established his political power in the country and turned to the economy. Just days after appointing his brother-in-law finance minister, Erdogan said he had the exclusive power to appoint people to determine the interest of the central bank
The actions of the Turkish president shake often the markets and Monday the pound falls "I expected Erdogan to be aware of the bitter price of the mercenary of the market, he obviously thinks that with his new powers, he can thwart the markets," he said. Atila Yessilada, economist at Bloomberg. in GlobalSource Partners in Istanbul
The Turkish leader took office as a state leader of extended powers after being re-elected on a modified constitution preparing to take more direct control over monetary policy.
Governing the Central Bank
In recent months, the 64-year-old chef has collided with the central bank for spending on loans that he is determined to keep low in almost all circumstances.
Turkey's largest trade badociation, Tusiad, called on the government to respect the rule of law and the independence of institutions and warned that the central bank's autonomy was "inadequate" very important for the strong Turkish economy. "
"The key is the independence of influence and the ability to do what is necessary." Given difficult decisions to take up with the new cabinet According to Michel Daneesi, portfolio manager of Vedra Partners Limited in London
the president of the central bank in Turkey has been co-chaired by the president, age and age. Deputy Prime Minister by decree signed by the government as a whole The decree, which is one of the first three, after the country has officially become a presidential republic, was promulgated in the Turkish Official Gazette and does not mention any other member of the government
The occupation of the Central Bank comes a few days after the appointment of Berat Albaicar, Erdogan's brother-in-law and former Minister of Energy the newly created Ministry of Treasury and Finance , combining the two most powerful economic positions
It replaces Mehmet Shimsek, former CEO of Merrill Lynch, and the last of the politicians that investors have trusted over the years to contain the rhetorical appetite president says for growth and preserves sustainable $ 880 billion Turkish economy However, Shimsek remained out of the new government
The Turkish lira erased its previous profits by depreciating more than 3% after the appointment Albania Monday
The decline of the currency is not good news for Turkish companies in hard currency debt and are now facing a currency debt constantly rising. The difference between foreign liabilities and badets in the corporate sector is close to $ 221 billion at the end of April
and preserved Mevluth Chavusoglu as Minister of Foreign Affairs.
The Chief of Staff, General Huuliy Akbar, who was taken hostage the night of the coup attempt against Erdogan, became Defense Minister. Murgaff Varang, Erdogan's advisor, will be responsible for industry and technology
During a campaign, Erdogan promised the Turks that the new presidential system would ensure stability in tumultuous times here and elsewhere . To fulfill its promise, it needs a stable economy, and the Turkish economy is now, but not stable,
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