Lira to record low: Erdogan dismisses Central Bank chief of the Turkey

Lira to record low
Erdogan dismisses Central Bank chief of the Turkey

The Turkish currency remains on a downward slide. Now President Erdogan dismisses the head of the Central Bank – he was only in July last year, had appointed.

In the midst of the accelerated decline of the Turkish Lira, the President, Recep Tayyip Erdogan, has fired the Central Bank chief Murat Uysal. This is evident from a in the night of Saturday, published the decree.

Uysal is now was the Post for Naci Agbal, and from 2015 to 2018, Minister of Finance. A reason was not called.

For around ten weeks, the Turkish currency is now back on an accelerated descent to other major currencies.

On Friday, the Lira reached in the trade with the US Dollar, a record low. For a Dollar, temporarily 8,576 Lira had to be paid; or about 49 percent more than a year earlier. One Euro was last at times almost 10,18 Lira, equivalent to even an increase of around 60 percent within a year’s time. To also has other major currencies, like the Swiss franc, the pound Sterling or the Japanese Yen, the Turkish currency value. In order to import goods for the Turks massively more expensive.

Erdogan had appointed Uysal until July 2019 for the Central Bank chief. Its predecessor, Murat Cetinkaya had failed to follow the instructions of the Prime rate, as it was then to the grounds. The conservative President, who advocates unorthodox monetary policy refers to the interest rate is often called the “mother of all Evil” and pushes for its reduction. Turkey is waging an economic war against a “vicious triangle” consisting of the interest rates, exchange rates and Inflation, had Erdogan said last weekend.

The most recent serious setback, the Turkish currency received in October, as the Central Bank of the country had increased the benchmark rate as widely expected. In spite of a high inflation rate of just under twelve percent, the Central Bank left the key interest rate unchanged at 10.25%, and thus the hope that a cycle of interest rate hikes in the fight against the inflation development burst.

dpa

#Topics