Economics
Lira Traders Brace for Impact After Erdogan Ousts Central Banker
- Currency set to end rally that boosted lira 10% since May 9
- Removing Cetinkaya reminds investors who runs monetary policy
Foreign currency exchange rates are displayed in a bureau de change window in Istanbul.
Photographer: Miguel Angel Sanchez/BloombergThis article is for subscribers only.
A rally that had turned the lira into the world’s best-performing currency since early May is probably over after President Recep Tayyip Erdogan reignited concerns about his influence over monetary policy.
Turkish stocks and bonds are also set to decline as investors digest Erdogan’s decision to use his executive powers to dismiss central bank Governor Murat Cetinkaya over the weekend, about a year before his term was due to end. He was replaced with deputy Governor Murat Uysal.