Turkey's Tayyip Erdogan explains why central bank needs to be reorganized

President Tayyip Erdogan said that Turkey could face serious problems if its central bank had not completely restructured after the dismissal of Governor Murat Cetinkaya, Haberturk news website reported on Wednesday.

A presidential decree on Saturday showed that Cetinkaya, whose term was to last four years until 2020, had been replaced by his deputy Murat Uysal, which revived concerns about political interference in monetary policy.

Erdogan told reporters on his return plane of a trip to Bosnia that Cetinkaya had made decisions for which a high price had been paid and that it had not inspired confidence nor communicated properly. with the market, said Haberturk.

"The central bank is the most important element of the financial pillar of the economy," Erdogan said. "If we do not completely revise it, if we do not melt it, we risk living with serious problems."

"More importantly, he did not inspire confidence in the markets, his communication with the markets was not good," he added.

Erdogan, who frequently criticizes high interest rates, has often called for lower rates to revive the economy, now hit by the recession. The reading, which weakened after Saturday's move, remained unchanged at 5.73 against the dollar after Erdogan's latest comments.