Erdogan initiates a mandate in Turkey; appoints his son-in-law finance minister

ISTANBUL.- The Turkish President, Tayip Erdogan marked the beginning of the new presidential system for which he had campaigned for a long time by putting his son-in-law in charge of the economy and promising a greater reorganization of a country in which he reigned for 15 years.

Hours after being given expanded powers at a ceremony in the capital, Ankara, Erdogan appointed Berat Albayrak as Minister of Treasury and Finance. Albayrak, 40, was the energy minister and previously ran a company perceived to be close to the government.

His appointment – and the absence of known ministers and market favorites in the firm – helped cause a sharp drop in the reading. Erdogan said the powerful executive presidency is vital for economic growth and the guarantee of security after a failed military state coup in 2016.

Western allies and rights groups criticize what they call growing authoritarianism and an attempt to lead a single man. Investors worry that they fear increased control of Erdogan on monetary policy.

"That Albayrak is the finance minister is not a good sign, especially because of his close relationship with the president Erdogan ." This is a sign that Erdogan will continue to control economic policy, "said Guillaume Tresca, emerging markets strategist at Crédit Agricole.

"The independence of the central bank could be compromised," he added.

Self-styled "enemy of interest rates", Erdogan wants to reduce funding costs to stimulate growth. Investors, who have warned against overheating of the credit-fueled economy, want decisive rate hikes to calm double-digit inflation.

With the new system, the post of prime minister has been eliminated and the president elects his own cabinet, regulates ministries and can dismiss officials – without the approval of Parliament.