Why Turkey’s currency is crashing after Recep Tayyip Erdogan got reelected

  • 📰 WashTimes
  • ⏱ Reading Time:
  • 53 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 25%
  • Publisher: 63%

Finance Finance Headlines News

Finance Finance Latest News,Finance Finance Headlines

Turkish President Recep Tayyip Erdogan won reelection last month despite a battered economy and a cost-of-living crisis that experts say are exacerbated by his unconventional economic policies.

The longtime leader appointed an internationally respected former banker as finance and treasury minister and on Friday named a former co-CEO of a U.S.-based bank as head of the central bank.

“I am anxious. I am unhappy. Soon my income won’t pay the rent,” said Sureyya Usta, a 63-year-old who lives in Ankara. In other policy considered to be unorthodox, economists say the government aggressively intervened in the markets to prop up the lira ahead of the elections, depleting Turkey’s foreign currency reserves to keep the exchange rate under control.

In another sign, Erdogan on Friday appointed Hafize Gaye Erkan to lead the central bank, taking over from the current chief who has championed rate cuts since 2021. Erkan, a former co-CEO of a U.S.-based bank, becomes Turkey’s first woman central bank governor. Economists say the sharp slide earlier in the week resulted from the government loosening its controls over the currency following Simsek’s appointment. However, the plunge may have been steeper than what it had anticipated.

Usta, the 63-year-old from Ankara, works at a firm that sells cash registry machines to boost her retirement pension but still struggles to pay her living expenses amid high inflation.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 235. in FİNANCE

Finance Finance Latest News, Finance Finance Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Turkey's Erdogan appoints a former Goldman executive as its new central bank chiefTurkey's President Recep Tayyip Erdogan has appointed U.S. finance executive Hafize Gaye Erkan as the country's new central bank governor.
Source: CNBC - 🏆 12. / 72 Read more »