After the collapse of the lira Babacan to Erdogan sarcastically: we need to centralize

After the Turkish lira fell to its lowest level, beating a new one for the third consecutive time record, surpassing 9.18 lira per US dollar, former deputy prime minister and head of the opposition party for democracy and progress, Ali Babacan, criticized the Turkish president’s decision to sack 3 Turkish central bank officials on Thursday morning. .

And Babacan considered, in a tweet he posted on his Twitter account that the institution that should have been independent became a game in the hands of one person, and then repeated his proposal to the president not to worry about money as he did with the Wealth Fund , but rather to appoint himself head of the Central Bank, in mocked him, by decision of the President.

He also concluded his words by saying: “Stop harming the country with midnight decisions”.

The Turkish lira falls to a minimum

This came after Turkish President Recep Tayyip Erdogan issued, in the prime Thursday morning, the decision to fire three central bank officials and appoint two more.

Following this decision, the Turkish lira fell to the lowest level, beating today for the third consecutive time a new record, exceeding 9.19 lire per US dollar.

As the losses of the Turkish lira continue, which has lost nearly 10% of its value since the beginning of September, this reason could drive the CPI to 20%.

The highest level of inflation

As for the inflation rate, it reached 19.58%, the highest level in two and a half years, and the losses of the Turkish lira since the beginning of the year have been equal to 20% of its value against the dollar.

The exemption decision, published in Official Gazette, concerns the two vice presidents of the Central Bank, Semih Tuman, Ugur Namik Koçek, and a member of the Monetary Policy Council, Abdullah Yavas, less than 5 months after his appointment to this position.

The decision included the appointment of Taha Chanak as Vice President of the Central Bank and Youssef Tuna as a member of the Monetary Policy Council.

Important meeting

Furthermore, this decision came after an important meeting held Thursday evening by President Erdogan with the governor of the Central Bank of Turkey, Shehab Kavcioglu, in the capital Ankara.

Turkish lira

Turkish lira

As investors observe the main point on the agenda is whether the Turkish central bank will continue to cut interest rates, which it started with 100 basis points at the end of last month.

Interestingly, many bankers are expressing concern about the continuation of interest rate cuts by the Central Bank, considering it may be necessary to raise interest rates suddenly. in short time, as the next meeting of the Bank’s Monetary Policy Committee will be held on 21 October

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