Turkish President Recep Tayyip Erdogan sacked three members of the central bank’s monetary policy committee on Thursday, to replace them with two others, sending the lira down to a new record low.
Deputy governors Semih Tumen and Ugur Namik Kucuk, along with another MPC member, Abdullah Yavas were dismissed and replaced with Taha Cakmak as a deputy central bank governor and Yusuf Tuna as an MPC member.
After the president’s decision, the lira fell to a record low of 9.1900 against the dollar, with a 1% loss only today, and 19% this year, driven by monetary policy concerns.
Last month, the central bank cut its key interest rate to 18% from 19%, despite annual inflation of nearly 20%, showing the usual political interference in the fiscal policies.
Erdogan has fired three central bank governors in the past two and a half years over political disagreements, battering the lira to a record low.
Headline inflation hit a two-and-a-half-year high of 19.58% in September, while the core measure recorded 16.98%. Erdoğan appointed Kavcioglu in March after ousting Naci Agbal, who raised interest rates to 19%.