Ex-Central Bankers Among Turkish Pundits at Risk of Lawsuits
Ex-Turkish Central Banker Among Lira Pundits Facing Legal Action
(Bloomberg) -- Turkey’s banking watchdog filed criminal complaints against more than a dozen individuals, including two former central bank governors, over their comments on the lira and a top government official said swifter legal action should follow.
Among those targeted with the complaint are Durmus Yilmaz and Rusdu Saracoglu, former chiefs of the monetary authority, economists including Guldem Atabay, opposition lawmaker Burhanettin Bulut and media commentators Emin Capa, Selcuk Gecer and Seref Oguz. The list published late Monday by the regulator names 26 individuals and Twitter accounts.
The regulator alleged the commentators attempted to manipulate Turkey’s exchange rate. It said the individuals are accused of violating an article of the banking law that protects the reputation of banks. The dates of the complaints range between Aug. 9 and Dec. 27.
The regulator needs to act faster over “fake, manipulative and speculative” comments and should “immediately” file lawsuits, Treasury and Finance Minister Nureddin Nebati said in an interview with AHaber television late on Monday.
President Recep Tayyip Erdogan announced extraordinary measures on Dec. 20 to arrest the lira’s losses against the dollar, including a new deposit tool that protects savers against currency depreciation. The lira regained some of its heavy losses that day, with a trough-to-peak move of 33%.
Speaking on Halk TV on Dec. 20, Durmus Yilmaz, who’s now an opposition lawmaker, said the advance of the Turkish currency that night presented a “buying opportunity.”
Erdogan slammed the former governor for committing the crime of “manipulation in financial markets” and warned that manipulators “will pay the price.” Speaking on Friday, he said “the banking regulator took the necessary steps.”
Turkish journalists and economists using social media to comment on the currency or government policies have in the past faced the threat of arrest or investigations, especially when authorities become more sensitive to criticism during periods of market turmoil.
Economist Atabay rejected the accusations in comments by phone on Monday.
“I don’t think I’ve crossed any lines,” she said. “I will wage a legal fight and meanwhile will continue to do my job.”
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