Turkey fires central bank chief
Skip to main content
  • Home
  • Economy
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Splash
  • Features
  • Videos
  • Long Read
  • Games
  • Epaper
  • More
    • COVID-19
    • Bangladesh
    • Infograph
    • Interviews
    • Offbeat
    • Thoughts
    • Podcast
    • Quiz
    • Tech
    • Subscribe
    • Archive
    • Trial By Trivia
    • Magazine
    • Supplement
  • বাংলা
The Business Standard
THURSDAY, MAY 19, 2022
THURSDAY, MAY 19, 2022
  • Home
  • Economy
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Splash
  • Features
  • Videos
  • Long Read
  • Games
  • Epaper
  • More
    • COVID-19
    • Bangladesh
    • Infograph
    • Interviews
    • Offbeat
    • Thoughts
    • Podcast
    • Quiz
    • Tech
    • Subscribe
    • Archive
    • Trial By Trivia
    • Magazine
    • Supplement
  • বাংলা
Turkey fires central bank chief

Global Economy

Reuters
06 July, 2019, 11:40 am
Last modified: 06 July, 2019, 05:11 pm

Related News

  • Erdogan says NATO should understand Turkey's security sensitivities
  • German's Scholz confident Turkey will back Finland, Sweden joining NATO
  • Sweden's plans for NATO membership hit snag as Turkey says no
  • NATO expects Turkey not to hold up Finland, Sweden membership bids
  • Turkey lays out demands as Finland, Sweden seek NATO membership

Turkey fires central bank chief

Reuters
06 July, 2019, 11:40 am
Last modified: 06 July, 2019, 05:11 pm
FILE PHOTO: Turkey's new central bank governor Murat Cetinkaya speaks during a brief ceremony at which he officially took over from outgoing governor Erdem Basci in Ankara, Turkey, April 19, 2016/REUTERS
FILE PHOTO: Turkey's new central bank governor Murat Cetinkaya speaks during a brief ceremony at which he officially took over from outgoing governor Erdem Basci in Ankara, Turkey, April 19, 2016/REUTERS

Turkey on Saturday fired its central bank governor as policy differences between the government and the bank deepened in the face of an economic slump, volatility in the lira currency and high inflation.

Murat Cetinkaya, who had been serving as the governor since April 2016, was removed from the role and was replaced by his deputy Murat Uysal, a presidential decree published on the official gazette showed.

No official reason was given for the sacking, but markets have speculated over recent weeks that Cetinkaya may be pushed out by the government because of his reluctance to cut rates.

The central bank has faced pressure in the past from President Tayyip Erdogan to lower interest rates to revive an economy which slipped into recession earlier this year.

The Turkish economy shrank sharply for the second straight quarter in early 2019 as a punishing currency crisis and soaring inflation and interest rates took a heavy toll on overall output.

Two government sources told Reuters that differences between the government and the governor over the conduct of monetary policy have deepened in the past few months.

"The difference of opinions between the governor and the ministers in charge of the economy has deepened in the recent period," said one of the sources.

Cetinkaya had hiked the benchmark interest rate by a total of 625 basis points last year to support the ailing lira , pushing it to 24 percent by September where it has since been left unchanged.

Erdogan, whose son-in-law is the finance and treasury minister, repeatedly criticised the central bank for keeping rates high.

"The President and the finance minister demanded his resignation, but Cetinkaya reminded of the bank's independence and declined to resign," the other source said.

In a statement on Saturday, the central bank said that it will continue to operate independently and that the new governor will focus on maintaining price stability as its key goal.

"In his first remarks, Murat Uysal, said that the communication channels would be used at the highest level in line with the price and financial stability goals," the bank said.

"He will hold a press conference within this frame in the coming days," the statement added.

The Turkish government was not immediately available for comment.

QUESTIONS OVER INDEPENDENCE

Data earlier in the week showed Turkey's consumer inflation slowed to its lowest level in a year in June, mainly due to a high base effect from the prior year and a drop in food prices, potentially paving the way for the country's first interest rate cut since last year's currency crisis.

Annual inflation hit a 15-year high in October above 25%, but later dipped and is currently running just over 15.5%.

Analysts expect the central bank could ease monetary policy at a July 25 meeting if the lira is not hit this month by threatened U.S. sanctions over Turkey's purchase of a Russian missile defence system.

The lira is down 10% this year after having plummeted 30% last year during the currency crisis.

While the central bank emphasized its independence, a senior banker who did not want to be named due to the sensitivity of the issue, said the sacking raised questions regarding the bank's authority.

"The removal of the governor from duty creates doubt regarding the job security of the head banker and the bank's independence. We will be watching the bank closely in the coming period," the Istanbul-based banker told Reuters.

The main opposition party also pointed to concerns that the move could undermine the bank's credibility.

"Those who removed the central bank governor overnight have lost the right to demand confidence in the country's economy. The central bank is a captive being kept in the palace," said the main opposition party spokesman Faik Oztrak, referring to Erdogan's office. 

World+Biz / Top News

Turkey / Murat Cetinkaya / central bank chief

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • Nearly 58% hike in bulk power price on cards
    Nearly 58% hike in bulk power price on cards
  • Illustration: TBS
    Let taka slide
  • Inflation jumps to 6.29% in April
    Inflation jumps to 6.29% in April

MOST VIEWED

  • Design artists work on their computer terminals at the Start-up Village in Kinfra High Tech Park in the southern Indian city of Kochi October 13, 2012. REUTERS/Sivaram V/Files
    Zombie unicorns: Indian startups go from feast to famine
  • File photo
    Dollar gains, stocks retreat as inflation jitters return
  • A view of the city skyline in Shanghai, China February 24, 2022. Picture taken February 24, 2022. REUTERS/Aly Song
    China, US lead rise in global debt to record high $305 trillion - IIF
  • The logo of Amazon is seen at the company's logistics center in Bretigny-sur-Orge, near Paris, France, 7 December, 2021. PHOTO: REUTERS/Gonzalo Fuentes
    Amazon discriminates against pregnant and disabled workers, New York alleges
  • A sign for BlackRock Inc hangs above the company's building in New York U.S., July 16, 2018. REUTERS/Lucas Jackson
    Global bond ETF industry to triple to $5 trillion by 2030 - BlackRock
  • Photo of World Bank. Photo: Collected
    World Bank to offer $30B over 15 months to ease looming food crisis-Treasury report

Related News

  • Erdogan says NATO should understand Turkey's security sensitivities
  • German's Scholz confident Turkey will back Finland, Sweden joining NATO
  • Sweden's plans for NATO membership hit snag as Turkey says no
  • NATO expects Turkey not to hold up Finland, Sweden membership bids
  • Turkey lays out demands as Finland, Sweden seek NATO membership

Features

‘The geopolitical landscape is undergoing profound change, Dhaka needs to craft proactive strategies’

‘The geopolitical landscape is undergoing profound change, Dhaka needs to craft proactive strategies’

21h | Interviews
Graphics: TBS

Facebook and Bangladeshi politicians: A new tide in mass political communication?

22h | Panorama
Despite Bangladesh having about 24,000 km of waterways, only a few hundred kilometres are covered by commercial launch services. Photo: Saad Abdullah

Utilising waterways: When common home-goers show the way

1d | Panorama
Illustration: TBS

How Putin revived Nato

1d | Panorama

More Videos from TBS

Cannes Film Festival 2022 resumes after 2 years

Cannes Film Festival 2022 resumes after 2 years

10h | Videos
Pension is coming for all

Pension is coming for all

11h | Videos
Bakery business in crisis for increased raw material prices

Bakery business in crisis for increased raw material prices

12h | Videos
Foods that have the most protein

Foods that have the most protein

12h | Videos

Most Read

1
Representative Photo: Pixabay.
Bangladesh

Microplastics found in 5 local sugar brands

2
Mushfiq Mobarak. Photo: Noor-A-Alam
Panorama

Meet the Yale professor who anchors his research in Bangladesh and scales up interventions globally

3
The story of Bangladesh becoming a major bicycle exporter
Industry

The story of Bangladesh becoming a major bicycle exporter

4
How Bangladesh can achieve edible oil self-sufficiency with local alternatives
Bazaar

How Bangladesh can achieve edible oil self-sufficiency with local alternatives

5
Govt tightens belt to relieve reserve
Economy

Govt tightens belt to relieve reserve

6
PK Halder: How a scamster rose from humble beginnings to a Tk11,000cr empire
Crime

PK Halder: How a scamster rose from humble beginnings to a Tk11,000cr empire

The Business Standard
Top
  • Home
  • Entertainment
  • Sports
  • About Us
  • Bangladesh
  • International
  • Privacy Policy
  • Comment Policy
  • Contact Us
  • Economy
  • Sitemap
  • RSS

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - oped.tbs@gmail.com

For advertisement- sales@tbsnews.net

Copyright © 2022 THE BUSINESS STANDARD All rights reserved. Technical Partner: RSI Lab