{"id":40014,"date":"2019-07-07T01:22:29","date_gmt":"2019-07-07T01:22:29","guid":{"rendered":"https:\/\/qatar-news.org\/qatarnewsEn\/?p=40014"},"modified":"2019-07-07T01:22:29","modified_gmt":"2019-07-07T01:22:29","slug":"turkeys-erdogan-meets-head-of-weakening-tripoli-government-sarraj","status":"publish","type":"post","link":"https:\/\/qatar-news.org\/qatarnewsEn\/?p=40014","title":{"rendered":"Turkey\u2019s Erdogan meets head of weakening Tripoli government Sarraj"},"content":{"rendered":"
\n

\nANKARA: The confidence of foreign investors in Turkey\u2019s recession-hit economy is at stake following\u00a0the surprise dismissal of the governor of the Central Bank by President Recep Tayyip\u00a0Erdogan on Saturday.
The four-year term of Gov. Murat Cetinkaya was due to last until 2020. But he was replaced\u00a0by his deputy Murat Uysal by presidential decree with no official reason given.
Uysal has spent most of his career at the state-run Halk Bank.
Analysts suggested that the dismissal is likely related to Erdogan\u2019s insistence on keeping\u00a0lower interest rates while the bank has mostly maintained its benchmark interest rates for 10\u00a0months.
Erinc Yeldan, professor of economics at Bilkent University in Ankara, said this is the latest\u00a0wave of economic mismanagement that will not only influence the Central Bank but also\u00a0other regulatory institutions.
\u201cThe Central Bank was facing pressure for about three years to be prevented from following\u00a0an independent interest rate policy. This latest move is a direct intervention into its\u00a0independence and is called crony capitalism,\u201d he told Arab News. According to Yeldan, this move will increase the perception of Turkey as risky for domestic\u00a0and international investors, alongside the deteriorating macroeconomic balances.
\u201cI expect the fluctuation in the exchange rates and the mismanagement of the risk perception\u00a0to bring further instability and prestige loss for the Turkish economy,\u201d he added.
Wolfango Piccoli, co-president of Teneo Intelligence, said that the sacking of Cetinkaya\u00a0suggests that Erdogan is not willing to tolerate a slow growth outlook.
\u201cIt is more proof that the independence of the Central Bank is gone and that Turkey\u2019s overall\u00a0institutional setup is getting weaker and weaker,\u201d Piccoli told Arab News.
\u201cIt sends all the wrong signals to investors. A selloff of the Turkish lira is likely on Monday.\u00a0The new governor will face an uphill struggle to gain any credibility,\u201d he added.
Tim Ash, senior emerging markets strategist at BlueBay Asset Management, said Cetinkaya\u00a0had few supporters and his sacking was expected.
\u201cThis was an opportunity to refresh and renew the Central Bank with someone from outside\u00a0with real monetary policy gravitas. That opportunity has been wasted,\u201d Ash told Arab News.
\u201cThe assumption is the new governor was hired because he will cut rates on demand from the\u00a0presidential palace. Ironically, Uysal\u2019s hiring likely makes it more difficult for the Central\u00a0Bank to cut rates as the risk is that the market will react badly to this change,\u201d he added.<\/p>\n

\n

\nThis is the latest\u00a0wave of economic mismanagement that will not only influence the Central Bank but also\u00a0other regulatory institutions.<\/p>\n

\nErinc Yeldan, Economics professor<\/p>\n<\/blockquote>\n

\nDurmus Yilmaz, a former Central Bank governor, said that the sacking is not based on legal\u00a0grounds and it undermined the bank\u2019s independence.
\u201cThey gave a terrible signal to the market. The credibility of the Central Bank was already\u00a0being questioned, and now the crisis has been deepened,\u201d Yilmaz told Arab News.
The timing of Cetinkaya\u2019s removal also coincides with impending political turmoil as Turkey\u00a0is set to receive Russian air defense systems that could trigger harsh sanctions by the US and\u00a0put the lira under more stress.
Last year\u2019s currency crisis diminished 30 percent of the lira\u2019s value.
The next meeting of the Central Bank is set to be held on July 25, where a decision for easing\u00a0monetary policy is expected.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

ANKARA: The confidence of foreign investors in Turkey\u2019s recession-hit economy is at stake following\u00a0the surprise dismissal of the governor of the Central Bank by President Recep Tayyip\u00a0Erdogan on Saturday.The four-year term of Gov. Murat Cetinkaya was due to last until 2020. But he was replaced\u00a0by his deputy Murat Uysal by presidential decree with no official…<\/p>\n","protected":false},"author":10,"featured_media":40015,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-40014","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-middle_east_news"],"_links":{"self":[{"href":"https:\/\/qatar-news.org\/qatarnewsEn\/index.php?rest_route=\/wp\/v2\/posts\/40014","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/qatar-news.org\/qatarnewsEn\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/qatar-news.org\/qatarnewsEn\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/qatar-news.org\/qatarnewsEn\/index.php?rest_route=\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/qatar-news.org\/qatarnewsEn\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=40014"}],"version-history":[{"count":0,"href":"https:\/\/qatar-news.org\/qatarnewsEn\/index.php?rest_route=\/wp\/v2\/posts\/40014\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/qatar-news.org\/qatarnewsEn\/index.php?rest_route=\/wp\/v2\/media\/40015"}],"wp:attachment":[{"href":"https:\/\/qatar-news.org\/qatarnewsEn\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=40014"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/qatar-news.org\/qatarnewsEn\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=40014"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/qatar-news.org\/qatarnewsEn\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=40014"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}