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Turkey replaces central bank head as lira sees record lows

Turkish President Recep Tayyip Erdogan has dismissed the head of the country’s central bank following a period of high inflation and record lows for the lira

Via AP news wire
Saturday 07 November 2020 01:10 EST
Turkey Currency
Turkey Currency (AP)

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Turkish President Recep Tayyip Erdogan on Saturday dismissed the head of the country’s central bank following a period of high inflation and record lows for the lira

Former Finance Minister Naci Agbal was brought in to replace Murat Uysal, according to a presidential decree announced in the Official Gazette.

The decision came after the lira lost nearly a third of its value since the start of the year - hitting a record low of 8.58 against the U.S. dollar on Friday - and annual inflation stood at 11.89%.

Uysal was appointed chairman of the central bank in July 2019 after his predecessor failed to cut interest rates to boost the economy.

Erdogan has called for rate cuts, refuting established economic theory that high rates can rein in inflation. Last weekend he described interest and exchange rates and inflation as the “devil’s triangle”.

Erdogan and the country’s finance minister, his son-in-law Berat Albayrak, have often blamed Turkey’s economic woes on foreign powers.

Agbal was appointed from his previous post as head of the presidential strategy and budget directorate. He served as finance minister between 2015 and 2018.

His new role comes as Turkey fears worsening relations with the U.S. should Democratic nominee Joe Biden win the presidential race.

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