Turkish Lira Under Renewed Pressure After Central Bank Chief Resigns

Turkey’s commitment to orthodox economic policies that made it an investor favorite will be put to the test after central bank governor Hafize Gaye Erkan resigned on Friday.

While the resignation did not come as a shock — pressure has been building for weeks amid local media reports on allegations that her family was involved in the central bank’s affairs — the lira weakened on the news. It dropped as much as 0.8% versus the dollar before paring losses, and was on track to the weakest level on record.