After President Recep Tayyip Erdogan dismissed three of Turkey’s central bank chiefs in the space of two and a half years, things are also seemingly narrowing for the current incumbent. Today, Reuters news agency has learned from several people familiar with the matter that the head of state has lost confidence in the head of the Central Bank, Sahab Kavcioglu. “The president’s confidence in the central bank governor has been damaged,” said one insider.
He was expected to cut interest rates quickly. Instead, it has maintained the same rate for months, “added another insider. There is serious concern about this issue. Erdogan no longer meets with Kavcioglu very often.”
The lira fell to a record low
Turkey’s national currency, the lira, has fallen to a record low, according to a Reuters report. It was only priced at 8.95 to the dollar. In the past three years, the lira has lost more than half its value.
According to observers, this is also due to Erdogan’s constant interference in the affairs of the Central Bank, undermining confidence in the monetary authorities and in the lira. The inflation rate recently reached 19.58 percent, its highest level in two and a half years.
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