| 19 May 2024, Sunday |

Turkish lira declines following the announcement of Central Bank deputy governor dismissal

Turkish Central Bank Deputy Governor Murat Cetinkaya was removed from his post, according to a presidential decree published in the Official Gazette today, Tuesday, which led to  the decline of Turkish lira as it touched 8.29 against the US dollar after the announcement, according to Reuters.

According to the decree, Mustafa Duman was appointed to succeed Cetinkaya.

Duman held executive positions at Morgan Stanley and worked in the treasury and risk management and auditing departments during his banking career, according to a résumé published by the central bank. The decree did not mention the reason for the change or any additional details.

On March 20, President Recep Tayyip Erdogan dismissed former bank governor Naji Iqbal and replaced him with Shihab Koçioglu, who supports the president’s vision that higher interest rates lead to an increase in inflation.

The decision led to market turmoil, amid concerns that Turkey may revert to unconventional economic policies, including imposing capital restrictions to protect its currency.

But the president’s chief economic adviser said Turkey was not considering imposing any capital restrictions.C