Turkey, Turkish Central Bank

Turkey appoints a new deputy governor for the Turkish Central Bank

Changes in the Central Bank of Turkey triggered a sharp decline in markets of Turkish lira, which depreciated against dollar and euro.

Turkey has appointed a new deputy governor for the Turkish Central Bank (Türkiye Cumhuriyet Merkez Bankası, or TCMB), in addition to a new member of the so-called Monetary Policy Committee (Para Politikası Kurulu, or PPK), 24 hours after two deputy governors of the TCMB and a member of the PPK were dismissed yesterday, triggering a sharp fall in the Turkish lira in markets.

According to a presidential decree published yesterday in the Official Gazette of the Republic, Taha Çakmak – who has held positions in the state bank Ziraat and in the banking supervision and regulation agency BDDK – would have been appointed as the new deputy governor of the Central Bank after the dismissal of the vice governors Semih Tümen and Uğur Namık Küçük, while Yusuf Tuna would be a new member of the PPK to replace the ousted Abdullah Yavaş.

These changes in the internal structure of the Turkish Central Bank come after a meeting that Turkish President Tayyip Erdoğan and Central Bank Governor Şahap Kavcıoğlu held late on Wednesday in Ankara, in which according to certain media Erdoğan would have lobbied in favor of changes more favorable to a rate cut that favours economic growth, despite the dismal inflation data in Turkey, where price increases continue to set new records.