Turkey's President Recep Tayyip Erdogan dismissed three central bank monetary policy committee members on Thursday, appointing two new members in their place and sending the lira to fresh record lows.
Those dismissed were deputy governors Semih Tumen and Ugur Namik Kucuk, along with another MPC member, Abdullah Yavas, according to the Official Gazette.
Mr Erdogan appointed Taha Cakmak as a deputy central bank governor and Yusuf Tuna as an MPC member.
The lira weakened to a record low of 9.1900 against the dollar after the announcement, a loss of 1 per cent on the day. It has weakened about 19 per cent so far this year, driven by concerns about monetary policy.
The MPC overhaul came after the presidency said on Wednesday evening that Mr Erdogan had met Central Bank Governor Sahap Kavcioglu, publishing a photo of Mr Erdogan standing next to him.
Last month the central bank cut its key rate to 18 per cent from 19 per cent, despite annual inflation of nearly 20 per cent, in a move analysts viewed as fresh evidence of political interference by Mr Erdogan, a self-described enemy of interest rates.
Mr Kavcioglu said this week the rate cut was not a surprise and had little to do with the subsequent lira sell-off.
The bank's next policy-setting meeting is on October 21.
Last week, three sources familiar with the matter said Mr Erdogan was losing confidence in Mr Kavcioglu, less than seven months after he sacked Mr Kavcioglu's predecessor, and that the two had communicated little in recent weeks.
Mr Erdogan has made a series of changes to the MPC in recent years. He fired three bank governors in the last two-and-half years over policy disagreements, hitting the lira and badly harming the credibility and predictability of monetary policy.
Headline inflation hit a two-and-half year high of 19.58 per cent in September, while a core measure - which Mr Kavcioglu has been stressing over the last month - was 16.98 per cent.
Mr Erdogan appointed Mr Kavcioglu in March after ousting Naci Agbal, a policy hawk who had hiked rates to 19 per cent.
Mr Erdogan ramped up pressure for easing in June when he said publicly that he spoke to Mr Kavcioglu about the need for a rate cut after August.
PREMIER LEAGUE TABLE
1 Man City 26 20 3 3 63 17 63
2 Liverpool 25 17 6 2 64 20 57
3 Chelsea 25 14 8 3 49 18 50
4 Man Utd 26 13 7 6 44 34 46
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5 West Ham 26 12 6 8 45 34 42
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6 Arsenal 23 13 3 7 36 26 42
7 Wolves 24 12 4 8 23 18 40
8 Tottenham 23 12 4 8 31 31 39
What is 'Soft Power'?
Soft power was first mentioned in 1990 by former US Defence Secretary Joseph Nye.
He believed that there were alternative ways of cultivating support from other countries, instead of achieving goals using military strength.
Soft power is, at its root, the ability to convince other states to do what you want without force.
This is traditionally achieved by proving that you share morals and values.
Killing of Qassem Suleimani
Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
Who's who in Yemen conflict
Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government
Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council
Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south
Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory
What sanctions would be reimposed?
Under ‘snapback’, measures imposed on Iran by the UN Security Council in six resolutions would be restored, including:
- An arms embargo
- A ban on uranium enrichment and reprocessing
- A ban on launches and other activities with ballistic missiles capable of delivering nuclear weapons, as well as ballistic missile technology transfer and technical assistance
- A targeted global asset freeze and travel ban on Iranian individuals and entities
- Authorisation for countries to inspect Iran Air Cargo and Islamic Republic of Iran Shipping Lines cargoes for banned goods
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
How to donate
Send “thenational” to the following numbers or call the hotline on: 0502955999
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