Econostrum | Economic News in the Mediterranean

Resignation of the Turkish Minister of Finance, son-in-law of President Erdogan

Written by Eric Apim on Monday, November 9th 2020 à 17:35 | Read 558 times

Resignation of the Turkish Minister of Finance, son-in-law of President Erdogan
TURKEY. Berat Albayrak resigned as Turkey's Minister of Treasury and Finance on Sunday, November 8, 2020.
The man who is none other than Recep Tayyip Erdogan's son-in-law (he married Esra Erdogan in July 2004) mentions health reasons on his Instagram account on which he announces the news.

The former businessman, now forty-two years old, former CEO of the conglomerate Çalık Holding, had entered politics in June 2015 as a member of parliament before experiencing a dazzling career. Minister of Energy and Natural Resources (November 2015), he was appointed Minister of Treasury and Finance by the Turkish President in July 2018.

His withdrawal occurred - the link of cause and effect remains highly probable - following the dismissal by Recep Tayyip Erdogan of Murat Uysal, governor of the Turkish Central Bank (CBRT) since July 2019. His predecessor, Murat Cetinkaya, had been dismissed because he refused to accept an interest rate cut recommended by the Turkish president to bring down inflation. At the time, this made Christine Lagarde, then director of the International Monetary Fund (IMF), react, questioning the independence of the Turkish Central Bank. "Some comments alerted the international community, and in particular investors, to the fact that the Central Bank of Turkey could be under the direction, orders and influence of the power (...) when it comes to monetary policy, it is always desirable that political leaders let central bank governors do their job and guarantee their independence".


Record 30% fall in the Turkish lira

According to Bloomberg, the new governor of the Central Bank, Naci Agbal (former Finance Minister between 2015 and 2018), who is very critical of Berat Albayrak's market intervention policy, would consider thanking the members of the Monetary Policy Committee close to the former Finance Minister.

The Turkish lira has been plummeting for weeks now and has recorded a record 30% drop in value against the US dollar in 2020. Naci Agbal is the fourth governor of the Central Bank to be appointed in five years.

The resignation of Berat Albayrak and the dismissal of Murat Uysal represent a "state crisis" according to Kemal Kilicdaroglu, number one of the main opposition party (CHP). In an intervention in Ankara on Monday, November 9, 2020, the leader of the Republican People's Party, spoke of a country run as "a family business".

With a debt of more than €100 billion, Turkey has a double-digit inflation rate (12.1%) and the Turkish lira has lost more than half of its value since the beginning of 2018.



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