Reuters: Erdogan’s snap economic rethink prompted by bleak briefings

Alarmed, the president summoned then-central bank governor Murat Uysal that Friday to ask how net FX reserves had fallen by more than half this year and his plan to restore the buffer. The drop is recorded in public central bank data so cannot have been a surprise, but the sources said the chat convinced Erdogan that Uysal must be replaced. … Read More >Reuters: Erdogan’s snap economic rethink prompted by bleak briefings

Fitch: Rebuilding Turkey’s monetary policy credibility will take time

This had been undermined by the extent of policy loosening earlier in the summer and the scale of CBRT FX interventions, which also suggested that the prior, long-standing commitment to a flexible exchange rate had weakened. The sacking of two CBRT governors over the last 16 months underlines the lack of independence from political pressure, and President Erdogan has continued to state his opposition to higher interest rates. … Read More >Fitch: Rebuilding Turkey’s monetary policy credibility will take time

Turkey’s central bank back to life; yet why was it whacked to begin with?

Turkey’s new central bank governor Naci Agbal now deserves a big applaud. He not only seemed to contain the President’s false and very costly theory on how high interest rates create high inflation, but also managed to kick aside the “Alice in Wonderland” approach to monetary policy management. Yet, Agbal will have to prove his good start is not only a tactical maneuver or the result of a temporary tolerance from Erdogan to avert the acute TL weakening.        … Read More >Turkey’s central bank back to life; yet why was it whacked to begin with?