The third in less than two years. Erdogan dismisses the central bank governor

Five months after his appointment by presidential decree, he dismissed the Turkish president Recep Tayyip ErdoğanOn Saturday, the Governor of Turkey’s Central Bank, Naji Aghbal, was appointed in his place, Shahib Kavcioglu.

Erdogan dismissed Appal days later Decision of the Turkish Central BankRaise the interest rate 200 basis points above expectations, from 17% to 19%, with the confirmation of an additional strong monetary tightening in the face of rising risks after he appointed a receiving agency 5 months ago as part of the “tough remedies” that he did pledged to reform the economic situation after a record drop in the Turkish lira against the dollar to hit 8.58.

The firing decision came at a time when the president is trying to save the deteriorating economy, sparking problems that led to Erdogan’s defeat in the local elections in Ankara and Istanbul in 2019.

The third is less than two years old

The new governor is considered the third in less than two years and was appointed by the president after Aghbal and before him by Murad Oissal, who opposes a rate hike.

He wrote in the Yeni Safak newspaper last February: “The central bank should not insist on the high interest rate policy as high interest rates indirectly lead to inflation.”

It is noteworthy that Turkey has faced enormous economic hardships since 2016, particularly inflation and the depreciation of the lira. Economists confirm that these problems are due to the mismanagement of crises.

The country is now at high risk from the three major rating agencies.

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