Murat Uysal is Turkey's new central bank governor

Jeannie Matthews
July 8, 2019

Under Turkey's new executive presidency, which came into effect previous year, Erdogan does not need cabinet approval to change the central bank governor.

Turkey on Saturday fired its central bank governor as policy differences between the government and the bank deepened in the face of an economic slump, volatility in the lira currency and high inflation.

"In his first remarks, Murat Uysal, said that the communication channels would be used at the highest level in line with the price and financial stability goals", the bank said.

Turkey's main interest rate is 24% after the bank under Mr. Çetinkaya made an aggressive rate hike of 625 basis points last September following a currency crisis in August.

Uysal's appointment also drew criticism from former central bank officials, who said laws that guarantee the regulator's independence also make it impossible for the executive branch to remove the governor unless he is involved in prohibited activities, such as holding shares in a commercial lender.

Erdogan had informed the Turkish Central Bank under pressure to cut interest rates.

Murat Cetinkaya, who had been serving as the governor since April 2016, was removed from the role a year before his four-year term was due to end in 2020, a presidential decree showed.

Duchess of Sussex visits Wimbledon to cheer on friend Serena Williams
For the first time ever, the Duchess made a public trip since the birth of Archie , her first child with Prince Harry . Williams and Meghan are close, with the tennis champion throwing Meghan a lavish celebrity baby shower in NY .

Los Angeles Lakers sign DeMarcus Cousins and Rajon Rondo
Rondo has experience with numerous Lakers key contributors, including two of the newest ones, DeMarcus Cousins and Anthony Davis . McGee also will re-sign with the Lakers for two years on a deal worth $8.2 million that has a player option.

Wimbledon 2019: Konta battles by Stephens again, Murray/Williams win
They've given me some of the most memorable and special moments on a tennis court, so of course it's nice winning that much. The French Open champion broke Dart twice as she kept up the pace in the second set and took the first four games.

"President Erdogan was unhappy about the interest rate and he expressed his discontent at every chance", a senior government official told the Reuters news agency.

However, the Erdogan-led government was not available to immediately deliver a response.

The change of central bank chief came after markets closed on Friday.

Turkey's budget deficit skyrocketed up to 225 percent in the first five months of the current year, however, according to Reuters. "The central bank is a captive being kept in the palace", said the main opposition party spokesman Faik Oztrak, referring to Erdogan's office. Full stop, ' he wrote on Twitter.

Turkey has been stockpiling parts for F-16s and other military equipment in anticipation of a US sanction for acquiring the Russian S-400 air defense system.

In 2018, the Turkish economy struggled due to a depreciation of the national currency, the lira, which fell almost 40 percent against the U.S. dollar as relations between Ankara and Washington deteriorated.

Other reports by

Discuss This Article