Turkish Lira Pares Drop as Central Bank Chief Vows Tight Stance
- New governor Kavcioglu says key rate will stay above inflation
- Lira sank almost 3% after latest central bank personnel change
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The lira pared its seventh day of declines as Turkey’s new central bank governor Sahap Kavcioglu gave currency traders what they wanted to hear, delivering a promise of tight monetary policy.
Local markets are still reeling from Turkish President Recep Tayyip Erdogan’s shock firing of Kavcioglu’s market-friendly predecessor more than a week ago. Before the governor’s remarks on Tuesday, the lira fell almost 3% after the latest surprise appointment at the central bank.