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Turkish President Recep Tayyip Erdogan has issued a decision to dismiss Central Bank Deputy Governor Murat Cetin Kaya and appoint Mustafa Duman as his replacement, about a week after the dismissal of Central Bank Governor Naji Aghbal and the appointment of Shihab Kafcioglu as his successor.
After the decision to remove the deputy governor of the Central Bank, local media reported that the Turkish lira fell against foreign currencies and its exchange rate against the dollar hit 8.25 after midnight on Monday. Tuesday, at a rate 0.81% lower. than the Monday closing price.
Erdogan’s decision to impeach the governor of the Central Bank sparked unrest in Turkish financial markets, as the exchange rate of the Turkish lira fell against foreign currencies and the stock market index of Istanbul fell to its lowest level in eight years on Monday.
the third time
This is the third time Erdogan has fired the central bank governor in two years, with the Turkish president rejecting central bank policies to raise interest rates on an annual basis.
Erdogan’s recent decisions have been criticized by the Turkish opposition because they directly and quickly affected Turkish markets, especially Turkish lira exchange rates and stock indexes, and the state of anxiety that prevailed. among investors, as local media estimated that local investors in the Turkish financial markets sold $ 6 billion in gold and foreign exchange last Monday, after Erdogan’s decision to dismiss the bank’s governor central, and the exchange rate of the local currency has fallen.
Moreover, after the central bank governor’s sacking, the Turkish lira lost 17% of its value, approaching its worst decline last November, and came back to lose 1% of its value at the end of last week.
Investors are concerned about the Turkish president’s interference in central bank policies and his willingness to cut interest rates, especially since he considered in previous statements that interest was “the mother and the father of all evil ”.
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