Turkey Central Bank Replaces Key Executives in Latest Clearout

Turkey’s central bank has replaced executives at some of its key departments, the latest step in a wider reshuffle that started with the president’s dismissal of a market-friendly governor.

The executive directors of the banking, research and statistics departments were among senior central bank staff who were replaced on May 27, according to people with direct knowledge of the matter. Some personnel changes were also made at the budget and legal departments, the people said, speaking on condition of anonymity as the internal changes are not announced to the public.

The central bank declined to comment.

The move comes two months after President Recep Tayyip Erdogan fired governor Naci Agbal, the bank’s third governor in less than two years, sending Turkish markets into a nosedive. Erdogan, who holds unorthodox ideas about monetary policy and its impact on inflation, has replaced three additional members of the central bank’s rate-setting committee since installing Sahap Kavcioglu as the new governor.

The decision to fire Agbal, who had sought to restore the central bank’s credibility, set off a swift reversal of investor enthusiasm. The lira has lost more than 15% against the dollar since he was ousted. The new governor has pledged policy continuity after his appointment and kept interest rates unchanged for a second month in May.

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