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Source, fake images
The President of the Central Bank of the Republic of Turkey (CBRT), Naci, the dismissal of Ağbal and instead Prof. Dr. Following the appointment of Şahap Kavcıoğlu, the Turkish lira rapidly depreciated against the dollar in superficial transactions in Asian markets, where the first price was made in the new week.
According to Bloomberg data, with the opening of the Asian markets, the dollar / TL rate increased 17 percent to 8.47.
Then the rate fell below 8.30.
Before Naci Ağbal was fired, the dollar / TL exchange rate closed the week at 7.21.
Naci Ağbal, who was appointed president of the Central Bank in November, was removed by President Recep Tayyip Erdoğan on March 19.
Before Ağbal was fired, the CBRT raised the policy rate by 200 basis points, above expectations, to 19 percent.
Naci Ağbal was the third president of the Central Bank to be dismissed in the last two years in Turkey.
President Recep Tayyip Erdogan has long been emphasizing that interest rates must be kept low. Erdogan believes that inflation can only be fought by keeping interest rates low.
Source, TWITTER
The new director of the CBRT, Prof. Dr. Şahap Kavcıoğlu also wrote in his Yeni Şafak newspaper article last month that high interest rates indirectly led to high inflation.
However, economists emphasize that keeping the interest rate high is one of the most important tools in the fight against inflation.
Faculty member of the University of Koç Prof. Dr. Selva Demiralp, the last Turkish BBC “There is a precondition for falling interest rates, which is to reduce inflation. Lowering interest rates before inflation falls will be counterproductive. Far from stimulating the economy, it creates more fragility,” he said in his article.
