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Turkey: Lira Drops after Central Bank Chief is Fired

Turkey: Lira Drops after Central Bank Chief is Fired

Monday, 8 July, 2019 - 08:45
FILE PHOTO: A logo of Turkey's Central Bank (TCMB) is pictured at the entrance of the bank's headquarters in Ankara, Turkey April 19, 2015. REUTERS/Umit Bektas
Asharq Al-Awsat

The Turkish lira has fell up to 2% against the dollar after President Recep Tayyip Erdogan fired the central bank governor reportedly over disagreements on interest rate cuts.

Murat Cetinkaya was replaced by Murat Uysal, the central bank's deputy governor, in a presidential decree published Saturday, the Saudi Press Agency (SPA) reported.

While no reason was given for the dismissal, Erdogan frequently criticized the central bank for keeping rates high.

On Monday, the lira weakened to 5.73 against the dollar.

Hurriyet newspaper said the governor had rejected calls by the president to lower the benchmark interest rate, which currently is at 24%.

According to AP, Uysal, the new governor, said the central bank would continue to "independently implement monetary policy instruments" for price stability.

Cetinkaya's four-year term was due to end next year.

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