Financial

Erdogan replaces finance minister as Turkey’s lira crashes

His resignation comes as the Turkish lira has been plummeting to successive all-time lows over concerns about the government’s economic policy. The lira’s plunge follows a series of cuts in borrowing costs despite soaring consumer prices that have made it difficult for people to buy food and other products.

The Turkish currency has lost about 40% of its value since the start of the year.

Erdogan strongly argues that high interest rates cause inflation – contrary to conventional economic thinking – and has made clear that the country would press ahead with rate cuts.

Nebati, 57, who has a doctorate in political science and public administration, is known to be a supporter of Erdogan’s drive to reduce interest rates even with inflation running at around 20%.

Nebati said Thursday that high interest rates would not be a “priority.”

“We will experience a process in which steps are taken within the scope of policies that are determined by our president,” the state-run Anadolu Agency quoted him as saying as he took office in a brief ceremony.

The president also has dismissed three central bank governors since 2019 over differences on interest rates, raising concerns about its independence.

Elvan, who stepped down as finance minister, had himself replaced Erdogan’s son-in-law, Berat Albayrak, who resigned last year.

(Copyright 2021 by The Associated Press. All Rights Reserved.)

Source: https://www.kob.com/business-news/turkeys-erdogan-replaces-finance-minister-as-lira-crashes/6318971/

Donovan Larsen

Donovan is a columnist and associate editor at the Dark News. He has written on everything from the politics to diversity issues in the workplace.

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