Turkey: Central Banker ousted, Albayrak resigns (?), with Halkbank in the background

Turkey: Central Banker ousted, Albayrak resigns (?), with Halkbank in the background

Even before the pandemic hit, investors anxious that a rising extension of credit to Turkish households and businesses would increase imports denominated in dollars and euros, weakening the lira, as citizens sold the lira and bought other currencies. He said "much higher interest rates and a strong commitment to structural reforms, ideally overseen by the International Monetary Fund" were needed for a sustained recovery in the currency. Television networks, mostly owned by businesses close to the presidency, had studiously ignored the departure of the government's economic policy-maker.

Regarding the announcement of Berat Albayrak's resignation through his Instagram account, there is confounding infromation, as there are no official statements on whether the resignation is valid or not.

'After serving in ministerial posts for almost five years, I took the decision not to continue my duty [as finance minister] due to health issues, ' Berat Albayrak said. Turkish Interior Minister Suleyman Soylu tried to step down earlier this year, but remains in the post after Erdogan rejected the resignation.

The central bank's new governor said the bank's primary objective was to achieve and maintain price stability.

In an unexpected move, Albayrak, finance minister since 2018, resigned late on Sunday citing health concerns.

Agbal, a close Erdogan ally, said developments would be monitored until a policy meeting set for November 19 when "necessary policy decisions will be made".

Albayrak's message, addressed not to Erdogan but "for the attention of the public", said he was resigning for health reasons.

"Do you have any business in dollars?" he demanded in comments that went viral on social media at the time.

"No matter how the official election results manifest, I thank you for the honest and determined vision you have put forth for Turkey-US relations to develop on the basis of our mutual interests and values during your presidency in the last four years", Erdogan said in the message.

"The Turkish lira on Monday gained value as the new central bank governor assumed the charge".

The central bank raised its benchmark rate for the first time in two years in September - from 8.25 to 10.25.

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