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Insights from the latest appointment of Governor of Central Bank of Turkey:
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In an unexpected turn of events, the recent development in banking landscape and the world of economy has grabbed the attention of people in the industry. A recent change has been observed by Recep Tayyip Erdogan, Turkey’s President at Nation’s Central Bank with the appointment of a new governor.
The decision has been taken following the sudden resignation of Hafize Gaye Erkan, who embraced the honour to be the first woman ever to hold the position citing reason to step down a “major reputation assassination campaign.” She also happens to be the fifth Central Bank Governor to resign from the position in the past five years.
How Inflation ended up becoming a political crisis of Turkey?
At a time when cost of living became a crisis and citizens of the country were witnessing a staggering annual inflation rate. According to Media Reports, almost doubled electricity bills were shared on social media by some “outrageous” consumers, the affair soon became almost a “political crisis.”
Turkey had then formed an up to date economic strategy which intended to control the period of instability in country’s financial situation. Surprisingly, this sudden change in leadership came up within eight months of the mentioned economic policies.
Hafize Gaye Erkan in her short but impactful time at Central Bank had made quite an impression. Her work record in the United States with First Republic Bank and Goldman Sachs was looked with optimism and favour. Her distinct work policies demonstrated her interest in pursuing conventional monetary policies.
Who has been appointed the new governor of Central Bank of Turkey?
Following the departure of Hafize Gaye Erkan from the post, the position has welcomed the bank’s now (former) deputy governor Fatih Karahan to take the legacy forward.
What is the Work Background of the newly appointed Central Bank’s Governor?
The new governor brings with him a rich background to the position. Having earned a doctorate in economics from the University of Pennsylvania, he has also been in academics at New York University and Columbia University. Besides he also has the experience of working as an economist at Amazon. Also his tenure at the same bank solidifies his credentials for this esteemed position.
As far as apprehensions of investors on the new appointment are concerned, it has been clearly stated by the bank officials that the change of governor will have no impact of existing policies.
What is the reason of Hafize Gaye Erkan resignation from the Central Bank governor’s post?
A statement released at her departure from the bank besides defending her accomplishments at work also cited her decision to step down from the position as a measure to protect her infant child and her family.
The finance minister of Turkey Mehmet Simsek categorized Hafize Gaye Erkan’s decision to leave the governor’s position as “personal.” Speaking of her successor, he called Fatih Karahan a “well-respected macroeconomist” and showed trust in his expertise and knowledge. Finance Minister and Vice President Cevdet Yilmaz also reiterated President’s support for the team as well.
Can Turkey’s Shift in a major Economic Position Tackle the Inflation Crisis?
The world of business and finance is full of unexpected turns and abrupt decisions. Being the first female to serve the position, Hafize Gaye Erkan pioneering stint at Central Bank Turkey has concluded and the new entrant at the position who has adequately served the bank in a different capacity before is being welcomed with hope and positive sentiments as the global observers are watching out for what solution he might offer to the economic situation of Turkey.
