Turkey’s Erdogan fires central bank deputy governor in the fourth ousting since March
The move constitutes the departure of the fourth central bank policymaker in the last two months.
Turkey’s annual inflation clocked in at above 16% in April, the highest since mid-2019.
Turkey is facing spiking coronavirus cases and a recent lockdown that threatens to derail its economically crucial summer tourist season once again.
Announced in an official decree overnight, the reshuffle had little effect on markets. The dollar was up 0.6% on the lira, which was trading at $8.4292 on Tuesday afternoon in Istanbul.
That’s a significant difference from the market reaction to Erdogan’s central bank intervention in March, when he sacked former central bank chief Naci Agbal after less than five months in the job.
Agbal’s policies raised interest rates — something Erdogan vocally opposes, despite double-digit inflation in Turkey. And for investors, who saw Agbal as a stabilizing market force, the move was highly unnerving.
Reference: CNBC
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