Turkey. Central bank governor’s impeachment pushes lira down 13% in Asia

The Turkish lira fell 13% at the start of trade in Asia, to touch November levels, after Turkish President Recep Tayyip Erdogan’s sudden decision to dismiss Central Bank Governor Naji Iqbal.

The pound fell to around 8.36 against the dollar, from Friday’s close at 7.2185, and stabilized at 8.2 by 18:01 GMT. Usually, these first transactions take place with little liquidity and are subject to large movements. Analysts were expecting a massive sell-off.

The currency rose 3% after raising the interest rate by 200 basis points on Thursday, which was seen to bolster the central bank’s credibility during the time of former governor Naji Iqbal. But Erdogan, who is also critical of the interest rate hike, appointed ex-banker Shehab Koçioglu in the wee hours of Sunday morning.

Source: “Reuters”

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