12 August, 2020

Turkish decree says president to appoint central bank governor for four year period

ISTANBUL (Reuters) – A Turkish presidential decree issued on Tuesday after Tayyip Erdogan was sworn alongside sweeping new executive powers said the president will appoint the central bank governor, deputies and monetary policy committee members for your 4-year period.

Three presidential decrees, published inside the country’s Official Gazette, set out the dwelling within the new presidential system along with the regulations managing the appointment of officials by way of the president.

Previously, there was a five-year term to the central bank head but a final decision published while in the Official Gazette removed this stipulation and scrapped a need that deputy governors contain a decade of experience.

Monday’s announcements had deepened worries for the bank’s independence and triggered losses from the lira, that was hit this holiday season by concerns about Erdogan’s drive for greater control over monetary policy.

Erdogan may be a self-described “enemy of interest rates” and investors are engaged that his push for cheaper borrowing costs would mean he’ll check out take greater power over monetary policy underneath the new system.

Erdogan appointed his son-in-law as Turkey’s finance minister on Monday hours after taking his oath of office.