Turkey’s Surprise Central Banker Switch Has Investors Upbeat
- New governor is seen intensifying drive to economic orthodoxy
- Deutsche Bank sees more room for interest-rate hikes
Fatih Karahan in Ankara, Turkey on Feb. 4, 2024.
Photographer: Emin Sansar/Anadolu Agency/Getty ImagesThis article is for subscribers only.
Investors who recently turned bullish on Turkey are unruffled by the shock departure of the its central-bank governor, showing trust in the personal guarantee of President Recep Tayyip Erdogan that the shift to market-friendly policies will continue.
In the past, surprise late-night changes at Turkey’s central bank have fueled periods of financial stress. This time appears different, investors said, thanks largely to new Governor Fatih Karahan’s credentials. The market reaction was muted on Monday as the lira fell 0.2% against the dollar while stocks rose.