The Turkish lira at a minimum due to the dismissal of the deputy governors of the Central Bank

An exchange office in Istanbul, in a file photo.  EFE / EPA / SEDAT SUNA
An exchange office in Istanbul, in a file photo. EFE / EPA / SEDAT SUNA

Ankara, Oct 14 (EFE) .- The Turkish lira has fallen to new historical lows after the president of Turkey, Recep Tayyip Erdogan, dismissed two deputy governors of the country’s Central Bank (issuer) and another senior official on Thursday by decree of the entity, all members of the Monetary Policy Committee.
The Turkish currency reacted to the measure with a setback that returned it to its historical minimum levels of 9.5 and 10.6 liras for one dollar and one euro, respectively, and at 05:00 it was trading at 9.13 liras / dollar and 10.6 lire / euro.
The decree with the dismissal of Lieutenant Governors Semih Tumen and Ugur Namik Kucuk, as well as Abdullah Yava, was published in the Official Gazette today.
In the same document, Erdogan appointed Taha Cakmak as new deputy governor, and Yusuf Tuna to replace Yava.
The corresponding decisions were adopted after a meeting of the country’s president with the governor of the Central Bank, Sahap Kavcioglu, held yesterday.
According to analysts, these dismissals are seen as part of attempts by Erdogan, who has already removed three Central Bank governors, to influence monetary policy, something that causes nervousness among investors and puts downward pressure on the Turkish currency. .
The lira was already under pressure since the issuing bank cut its interest rates from 19% to 18% last month and the inflation rate reached 19.58%, its highest level in two and a half years.
In March, Erdogan fired Naci Agbal, the third governor of the central bank to be dismissed in less than two years, and replaced him with Sahap Kavcioglu, a newspaper columnist who shares the president’s unconventional view that high interest rates drive investment. inflation, instead of curbing it.

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