Supervisor Elham AbolFateh
Editor in Chief Mohamed Wadie

Turkish Central Bank Governor "Hafize Gaye Erkan" Resigns

Fri 02 Feb 2024 | 11:51 PM
Taarek Refaat

The Governor of the Central Bank of Turkey, Hafize Gaye Erkan, requested to be relieved of her duties, according to a post on her account on the social media platform “X”.

Arkan cited a clear defamation campaign against her, and said that she would resign to protect her family, including her child. Last month, local media published allegations that the Erkan family was involved in managing the affairs of the Central Bank, allegations that Arkan denied.

The value of the Turkish lira tumbled after the news traded, losing 0.6% of its value and reaching 30.5163 against the dollar, a record low on a closing basis.

The value of the currency has fallen by about 23% since Erkan and Treasury and Finance Minister Mehmet Simsek were appointed by President Recep Tayyip Erdogan in June to lead a reform to attract investors to Turkey's economic policies, which included aggressively raising interest rates and allowing the currency to trade more freely in a bid to attract foreign investment.

The Turkish Ministry of Treasury and Finance said that Arkan's resignation was a "personal" decision. The statement said that President Recep Tayyip Erdogan "has full confidence and support in our economic team and program." 

on his part, Minister of Treasury and Finance, Mehmet Simsek, explained that the Turkish economic program will continue without interruption, adding that he will submit a proposal to appoint a new governor of the Central Bank.

Erkan thanked Erdogan and Simsek in her resignation.

Erkan, who was appointed by Turkish President Recep Tayyip Erdogan to head the central bank in June, previously worked for Goldman Sachs and First Republic Bank in the United States.