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Turkey’s Erdogan overhauls cenbank MPC, appoints two new members By Reuters

by Mike Robinson

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© Reuters. FILE PHOTO A logo for Turkey’s Central Bank is pictured in front of its headquarters in Ankara (Turkey) April 19, 2015. REUTERS/Umit Bektas///File Photo

ISTANBUL (Reuters – Turkey’s President Tayyip Turkey dismissed members Semih Tmen, Ugur Nmik Kucuk, and Abdullah Yavas of its central bank monetary strategy committee (MPC). He appointed two new members, according the Official Gazette.

Erdogan appointed Taha Kakmak to be a deputy governor of the central bank and Yusuf Tuna to serve as MPC member. Tumen, Kucuk and both were deputy governors.

Following the announcement, the record breaking low of 9.1700 per dollar was reached by the lira. This year, it has fallen by around 19%.

Tuesday evening saw the president announce that Erdogan met Central Bank Governor Sahap Kavioglu. He published a picture of Erdogan standing beside him.

The central bank cut its key interest rate to 18% last month from 19% in spite of annual inflation exceeding 20%. Analysts saw this as a new evidence of Erdogan’s political interference with interest rates.

On Oct. 21, the next meeting for policy setting will be held by the bank.

Sources familiar with the subject said that Erdogan lost faith in Kavcioglu last week less than seven months following the dismissal of his predecessor. The two also communicated very little over the past weeks.

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