Amid financial crisis, Erdogan’s government is in shock

In light of the financial and economic crisis, it seems the Turkish government is in shock.

Maher Onal, deputy head of the ruling Justice and Development Party, said today, Tuesday, that Turkish President Recep Tayyip Erdogan will reshuffle after recent media speculation on the move.

He also said in response to a question about the cabinet reshuffle: “When we start talking about change, and even when one party changes, there is movement.”
The whole system. ”

In addition, he alluded to the presidential and legislative elections scheduled for 2023, saying: “In 2023 there will be another reshuffle in the squad and not just within the party. We will see that in the coming days.”

Financial market crisis

Onal’s comments came amid a crisis in financial markets after Erdogan sacked the central bank governor on Saturday, two days after raising interest rates to contain inflation, and appointed Shihab Koçioglu, considered one of the critics of tightening monetary policy in his place.

At the same time, the Turkish lira fell 0.6% today, as it is under pressure, due to the fallout from Erdogan’s replacement of the central bank governor. It posted 7.85 per dollar at 05:00 GMT, after closing at 7.8050 on Monday, as it fell 15%, near record lows.

It is worth noting that Shihab Koçioglu, a former ruling party lawmaker, shares with Erdogan his unconventional view that high interest rates cause inflation.

The sacking drew much criticism in the country from the opposition, which confirmed that the Turkish president’s policies brought bad luck and fueled the economic crisis instead of solving it.