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Iranian Delegation Pressures Baghdad to Recognize Soleimani as State Guest

A member of Iraq’s PMF stands guard in front of a banner depicting slain Iraqi deputy chief Abu Mahdi al-Muhandis and Iranian Quds Force commander Qassem Soleimani (AFP)
A member of Iraq’s PMF stands guard in front of a banner depicting slain Iraqi deputy chief Abu Mahdi al-Muhandis and Iranian Quds Force commander Qassem Soleimani (AFP)
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Iranian Delegation Pressures Baghdad to Recognize Soleimani as State Guest

A member of Iraq’s PMF stands guard in front of a banner depicting slain Iraqi deputy chief Abu Mahdi al-Muhandis and Iranian Quds Force commander Qassem Soleimani (AFP)
A member of Iraq’s PMF stands guard in front of a banner depicting slain Iraqi deputy chief Abu Mahdi al-Muhandis and Iranian Quds Force commander Qassem Soleimani (AFP)

An Iranian delegation arrived in Baghdad last week to pressure the Iraqi government to recognize that General Qassem Soleimani, who was assassinated in 2020, was an official guest of Iraq, Iraqi sources reported.

According to the sources, the delegation included diplomats and jurists from Tehran, all of whom were commissioned by Foreign Minister Hossein Amir-Abdollahian.

They exerted great pressure on the government of Iraqi Prime Minister Mohammed Shia' al-Sudani to issue an official document recognizing that Soleimani was an official guest of Iraq when he was assassinated at dawn on January 3, 2020, sources told Asharq Al-Awsat.

The Iraqi government asked its experts to study the request and figure out a way to issue the document without angering Washington.

Shiite parties backing al-Sudani’s government fear that Soleimani’s case will affect Baghdad’s relationship with the US, which they see as “necessary for the stability of the prime minister’s position.”

Former Iraqi Prime Minister Adil Abdul-Mahdi, two days after Soleimani’s assassination, affirmed that he was slated to meet the slain Iranian general. He said Soleimani was meant to deliver an Iranian response to a letter from Saudi Arabia regarding truce negotiations in the region.

Sources close to the government offices claimed that al-Sudani wants to please the US and Iran at the same time, and this pushes him to search for a compromise regarding Soleimani’s file.

Moreover, sources pointed to Iraqi officials’ shock at “the Iranian rush regarding the recognition, especially its political timing.”

Pro-Iranian Shiite parties are not enthusiastic about Tehran’s demand. Even the leader of the Asa'ib Ahl al-Haq movement does not now want a confrontation with Washington, sources affirmed.

An Iraqi legal expert, who requested anonymity, said that the request indicates Iranian intent to draft a judicial file based on violating Iraq’s sovereignty in accordance with international law. Tehran wants to accuse Washington of assassinating a figure who was labeled an official guest.

This will lead Iraq, according to the expert, to be a binding party in bringing any lawsuit before the international courts against the US.

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World

Putin Says Tactical Nuclear Weapons to Be Deployed in Belarus in July

Russian President Vladimir Putin and Belarusian President Alexander Lukashenko speak during a meeting at the Bocharov Ruchei residence in Sochi, Russia June 9, 2023. (Sputnik/Kremlin via Reuters)
Russian President Vladimir Putin and Belarusian President Alexander Lukashenko speak during a meeting at the Bocharov Ruchei residence in Sochi, Russia June 9, 2023. (Sputnik/Kremlin via Reuters)
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Putin Says Tactical Nuclear Weapons to Be Deployed in Belarus in July

Russian President Vladimir Putin and Belarusian President Alexander Lukashenko speak during a meeting at the Bocharov Ruchei residence in Sochi, Russia June 9, 2023. (Sputnik/Kremlin via Reuters)
Russian President Vladimir Putin and Belarusian President Alexander Lukashenko speak during a meeting at the Bocharov Ruchei residence in Sochi, Russia June 9, 2023. (Sputnik/Kremlin via Reuters)

Russia will start deploying tactical nuclear weapons in Belarus after special storage facilities are made ready on July 7-8, President Vladimir Putin said on Friday, Moscow's first move of such warheads outside Russia since the fall of the Soviet Union.  

Putin announced in March he had agreed to deploy such weapons in Belarus, pointing to US deployment of tactical nuclear weapons in a host of European countries over many decades.  

"Everything is going according to plan," Putin told Belarusian President Alexander Lukashenko, discussing the planned nuclear deployment over a meal at the Russian leader's summer retreat in the Black Sea resort of Sochi.  

"Preparation of the relevant facilities ends on July 7-8, and we will immediately begin activities related to the deployment of appropriate types of weapons on your territory," Putin said, according to a Kremlin transcript of his remarks.  

Lukashenko said: "Thank you, Vladimir Vladimirovich."  

More than 15 months into the biggest land war in Europe since World War Two, Putin says the United States and its Western allies are pumping arms into Ukraine as part of an expanding proxy war aimed at bringing Russia to its knees.  

Putin, 70, casts the war as a battle for Russia's own survival in the face of what he says is an ever-expanding NATO. He has warned the West that Moscow will not back down.  

Ukrainian President Volodymyr Zelenskiy says Ukraine will not rest until every last Russian soldier is ejected from his country, and wants it to join NATO as soon as possible.  

Putin's nuclear move is being watched closely by both the United States and its NATO allies in Europe and by China, which has repeatedly cautioned against the use of nuclear weapons in the conflict.  

The United States has criticized Putin's nuclear deployment but has said it has no intention of altering its position on strategic nuclear weapons and also that it has not seen any signs Russia was preparing to use a nuclear weapon.  

The war in Ukraine has triggered what both Moscow and Washington says is the deepest crisis in relations since the depths of the Cold War, with major nuclear arms control treaties unravelling and both sides denouncing the other in public.  

Putin's nuclear remarks have raised particular concern.  

Last September, he warned the West he was not bluffing when he said Russia would use "all available means to protect Russia and our people".  

It is still unclear where the Russian nuclear warheads - which will remain under Russian control - will be kept in Belarus.  

Range  

Putin, who is the ultimate decision maker on any nuclear launch, said Iskander mobile short-range ballistic missiles, which can deliver nuclear warheads, had already been handed over to Belarus. Russian sources say the Iskander has a range of 500 km (310 miles).  

Belarus said Su-25 aircraft had been adapted to carry the warheads. The Sukhoi-25 jet has a range of up to 1,000 km (620 miles), according to Russian sources.  

If the weapons were launched from Belarus's main air base outside Minsk, those delivery vehicles could potentially reach almost all of eastern Europe - including a host of NATO members - as well as cities such as Berlin and Stockholm.

After the Soviet collapsed in 1991, the United States went to enormous efforts to return the Soviet nuclear weapons stationed in Belarus, Ukraine and Kazakhstan to Russia - which inherited the nuclear arsenal of the Soviet Union.

Until now, Russia has not announced any nuclear weapon deployments outside its borders.

Putin has repeatedly raised the issue of US B61 tactical nuclear warheads deployed at bases in Belgium, the Netherlands, Germany, Italy and Türkiye. Moscow is also unhappy about a reported upgrade of the B61, which was first tested in Nevada shortly after the Cuban Missile Crisis.

World

Blinken to Travel to China Next Week, Carrying Out Trip Postponed after Spy Balloon Incident

Secretary of State Antony Blinken listens as he attends a joint news conference with Saudi Arabia's Foreign Minister Prince Faisal bin Farhan, not pictured, at the Intercontinental Hotel in Riyadh, Saudi Arabia, Thursday, June 8, 2023. (AP)
Secretary of State Antony Blinken listens as he attends a joint news conference with Saudi Arabia's Foreign Minister Prince Faisal bin Farhan, not pictured, at the Intercontinental Hotel in Riyadh, Saudi Arabia, Thursday, June 8, 2023. (AP)
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Blinken to Travel to China Next Week, Carrying Out Trip Postponed after Spy Balloon Incident

Secretary of State Antony Blinken listens as he attends a joint news conference with Saudi Arabia's Foreign Minister Prince Faisal bin Farhan, not pictured, at the Intercontinental Hotel in Riyadh, Saudi Arabia, Thursday, June 8, 2023. (AP)
Secretary of State Antony Blinken listens as he attends a joint news conference with Saudi Arabia's Foreign Minister Prince Faisal bin Farhan, not pictured, at the Intercontinental Hotel in Riyadh, Saudi Arabia, Thursday, June 8, 2023. (AP)

Secretary of State Antony Blinken is planning to travel to China this month as the Biden administration pushes to improve badly deteriorated ties with the Chinese.

US officials say Blinken expects to be in Beijing on June 18 for meetings with senior Chinese officials, including with Foreign Minister Qin Gang and possibly President Xi Jinping.

The officials spoke on condition of anonymity because neither the State Department nor the Chinese foreign ministry have yet confirmed the trip.

The visit, which was agreed between Xi and President Joe Biden last year at a meeting in Bali, had been initially planned for February but was postponed after the spy balloon incident in which the US shot down a Chinese aircraft that Beijing insisted was a weather balloon that had strayed off course.

Since then, there have been contacts between the US and China, but they have been rare as tensions have risen over China's conduct in the South China Sea, aggressive actions toward Taiwan and support for Russia's war against Ukraine.

Last week, China's defense minister rebuffed a request from US Defense Secretary Lloyd Austin for a meeting on the sidelines of a security symposium in Singapore.

However, China's commerce minister traveled to the US last month and Biden's national security adviser Jake Sullivan met with China's top diplomat, Wang Yi, in Vienna in early May.

The White House said at the time that the meeting “was part of ongoing efforts to maintain open lines of communication and responsibly manage competition. The two sides agreed to maintain this important strategic channel of communication to advance these objectives.”

More recently, the top US diplomat for the Asia-Pacific region, Daniel Kritenbrink, traveled to China earlier this week along with a senior National Security Council official.

World

Putin Says Ukrainian Offensive Has Begun, but Failed So Far

Ukrainian soldiers works during a combat operation on the frontline near Kreminna, Luhansk region, Ukraine, Thursday, June 8, 2023. (AP)
Ukrainian soldiers works during a combat operation on the frontline near Kreminna, Luhansk region, Ukraine, Thursday, June 8, 2023. (AP)
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Putin Says Ukrainian Offensive Has Begun, but Failed So Far

Ukrainian soldiers works during a combat operation on the frontline near Kreminna, Luhansk region, Ukraine, Thursday, June 8, 2023. (AP)
Ukrainian soldiers works during a combat operation on the frontline near Kreminna, Luhansk region, Ukraine, Thursday, June 8, 2023. (AP)

Russian President Vladimir Putin said Ukraine had begun a major offensive against Russia's army but that Ukrainian forces had failed to achieve their objectives despite intense fighting over at least three days.

"We can state for sure that this offensive has begun. This is evidenced by the use of strategic reserves of the Ukrainian army," Putin told Russian reporters in Sochi. "Ukrainian troops did not achieve their goals in any sector."

Putin said fighting had been very intense over the past three days but that "the enemy did not have success" in any of the battles.

World

Pentagon Announces $2 Bln Ukraine Air Defense Package

A view of a damaged multi-storey apartment building after a reported drone attack in Voronezh on June 9, 2023. (AFP)
A view of a damaged multi-storey apartment building after a reported drone attack in Voronezh on June 9, 2023. (AFP)
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Pentagon Announces $2 Bln Ukraine Air Defense Package

A view of a damaged multi-storey apartment building after a reported drone attack in Voronezh on June 9, 2023. (AFP)
A view of a damaged multi-storey apartment building after a reported drone attack in Voronezh on June 9, 2023. (AFP)

The US Department of Defense announced the latest in a series of aid packages for Ukraine on Friday, an additional $2.1 billion in security assistance that it said included critical air defense and ammunition capabilities.

The package includes additional munitions for Patriot air defense systems, Raytheon HAWK air defense systems and missiles, 105mm and 203mm artillery rounds, AeroVironment Puma unmanned aerial systems, laser-guided rocket system munitions and support for training and maintenance, the Defense Department said in a statement.

Ukraine Security Assistance Initiative (USAI) funds will be used to purchase the weapons, allowing President Joe Biden's administration to buy weapons from industry rather than pull them from US stocks. Delivery of the weapons and systems depends on their availability and production timeline.

World

Iran Rejects Western Criticism of its Ballistic Program

Two Iranian women pass in front of a billboard depicting a “hypersonic” missile, and the slogan, “400 seconds to Tel Aviv”, in Tehran. (Reuters)
Two Iranian women pass in front of a billboard depicting a “hypersonic” missile, and the slogan, “400 seconds to Tel Aviv”, in Tehran. (Reuters)
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Iran Rejects Western Criticism of its Ballistic Program

Two Iranian women pass in front of a billboard depicting a “hypersonic” missile, and the slogan, “400 seconds to Tel Aviv”, in Tehran. (Reuters)
Two Iranian women pass in front of a billboard depicting a “hypersonic” missile, and the slogan, “400 seconds to Tel Aviv”, in Tehran. (Reuters)

Iranian Foreign Ministry spokesman Nasser Kanaani rejected western criticism of his country’s ballistic missiles program, after Tehran announced the development of its first domestically made “hypersonic” ballistic missile.

“The precision-guided Fattah hypersonic missile has a range of 1,400 km and it is capable of penetrating all defense shields,” Amirali Hajizadeh, the head of the Revolutionary Guards’ aerospace force, was quoted as saying by Iranian state media.

This is the second ballistic missile announced by Iran within two weeks, after it tested, earlier last month, a ballistic missile with a range of 2,000 kilometers.

Hypersonic missiles can fly at least five times faster than the speed of sound and on a complex trajectory, which makes them difficult to intercept. Last year, Iran said it had built a hypersonic ballistic missile which can maneuver in and out of the atmosphere.

The Revolutionary Guard revealed a model of the missile during a ceremony attended by its senior commanders and Iranian President Ibrahim Raisi.

In a statement on Thursday, Kanaani said that his country’s missile activities are “well-known, defensive, and legitimate, in accordance with international laws,” accusing Western countries of “interfering” in his country’s affairs.

“These countries, which have a long and clear history of violating international obligations in several areas, including nuclear tests, the non-proliferation system, stockpiling ballistic missiles, and playing a disruptive role in regional and international issues, are not entitled to comment on Iran’s legitimate and legal defense capabilities,” he said.

Kanani specifically referred to the security alliance between Australia, Britain and the United States, known as AUKUS, saying: “This alliance is a blatant example of the political and discriminatory orientation of the nuclear powers in transferring technology and highly enriched uranium to non-nuclear states, contrary to the Non-Proliferation Treaty.”

Kanaani’s remarks came at a time when giant posters depicting the Fattah missile and the slogan “400 seconds to Tel Aviv '' invaded billboards and two walls in squares and large streets in Tehran, which are usually reserved for propaganda sponsored by the IRGC.

“We are proud of the missile production that dazzles the world,” said Raisi on Thursday, during a tour of East Azerbaijan Province.

On Wednesday, the French Foreign Ministry expressed its concern over the Revolutionary Guards’ announcement of a new ballistic missile, stressing Paris’ determination to prevent Tehran from acquiring nuclear weapons.

“This is yet another breach of UN Security Council Resolution 2231. These activities come amid the continued escalation of Iran’s nuclear and ballistic programs. We remain fully mobilized to prevent Iran from obtaining nuclear weapons,” the ministry said in a statement.

The British Foreign Office said that Iran’s announcement “further proves its continued disregard of international restrictions and the grave threat posed by the regime to global security.”

“Alongside partners, the UK remains committed to taking every diplomatic step to prevent Iran from developing nuclear weapons and to hold the regime to account for its malign activity around the world,” the statement added.

The US Treasury announced the imposition of a set of sanctions on a number of companies in China and Hong Kong for supporting Iran’s ballistic missile program. It confirmed that Chinese companies sent centrifuges, non-ferrous metals that can be used for military purposes, and electronic equipment to government branches and private companies in Iran involved in missile manufacturing and subject to sanctions.

“Today’s action reinforces our commitment to respond to activities which undermine regional stability and threaten the security of our key partners and allies,” said Under Secretary of the Treasury for Terrorism and Financial Intelligence Brian Nelson.

He added: “The United States will continue to target illicit transnational procurement networks that covertly support Iran’s ballistic missile production and other military programs.”

 

World

NATO May Base Troops in Sweden before Stockholm Joins

File photo: Ulf Kristersson, leader of Sweden's Moderate Party, announces at a news conference, after his meeting with the Speaker of the Parliament that his attempt to form a government failed, in Stockholm, Sweden October, 14 2018. TT News Agency/Henrik Montgomery via REUTERS
File photo: Ulf Kristersson, leader of Sweden's Moderate Party, announces at a news conference, after his meeting with the Speaker of the Parliament that his attempt to form a government failed, in Stockholm, Sweden October, 14 2018. TT News Agency/Henrik Montgomery via REUTERS
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NATO May Base Troops in Sweden before Stockholm Joins

File photo: Ulf Kristersson, leader of Sweden's Moderate Party, announces at a news conference, after his meeting with the Speaker of the Parliament that his attempt to form a government failed, in Stockholm, Sweden October, 14 2018. TT News Agency/Henrik Montgomery via REUTERS
File photo: Ulf Kristersson, leader of Sweden's Moderate Party, announces at a news conference, after his meeting with the Speaker of the Parliament that his attempt to form a government failed, in Stockholm, Sweden October, 14 2018. TT News Agency/Henrik Montgomery via REUTERS

Sweden will allow NATO to base troops on its territory even before it formally joins the defense alliance, the prime minister and defense minister said on Friday.

Sweden applied last year to join NATO as a result of Russia's invasion of Ukraine. Objections from Türkiye and Hungary have delayed the bid and Sweden now hopes to join a NATO summit in Lithuania next month, Reuters said.

"The government has decided that the Swedish Armed Forces may undertake preparations with NATO and NATO countries to enable future joint operations," Prime Minister Ulf Kristersson and Defense Minister Pal Jonson said.

"The preparations may consist of temporary basing of foreign equipment and personnel on Swedish territory. The decision sends a clear signal to Russia and strengthens Sweden's defense," they said in an opinion piece in daily Dagens Nyheter.

Russia would for the foreseeable future remain a threat against neighboring countries, they said, and they were uncertain of the extent of President Vladimir Putin's territorial ambitions.

Fellow Nordic country Finland, which has a long border with Russia, joined NATO in April.

World

Sweden Charges Man Suspected of Financing PKK

A general view of the Swedish parliament. Reuters file photo
A general view of the Swedish parliament. Reuters file photo
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Sweden Charges Man Suspected of Financing PKK

A general view of the Swedish parliament. Reuters file photo
A general view of the Swedish parliament. Reuters file photo

Swedish prosecutors charged a man on Friday on suspicion of gun crimes and raising money for the outlawed Kurdistan Workers Party (PKK).

They said the case was the first time anyone had been charged in Sweden with attempting to provide finances to the PKK, designated a terrorist outfit by Türkiye, the European Union and the United States.

It comes at a sensitive time for relations with Türkiye.

"The investigation has given support for suspicions that the man was acting on behalf of the Kurdistan Workers Party," the prosecution authority said in a statement.

It said it was bringing charges against the man, who is in his 40s, as he was suspected of aggravated extortion, serious gun crime and attempted funding of terrorism.

The case comes as Ankara holds up Sweden's application for NATO membership, in part because it says Sweden harbors supporters of militant groups it considers to be terrorists.

Talks between the two countries over NATO accession are due to restart next week.

Sweden, which applied to join NATO last year following Russia's invasion of Ukraine, wants its membership ratified before the alliance's summit in mid-July in Vilnius.

Only Türkiye and Hungary have yet to approve the bid. Finland, which applied alongside Sweden and was initially blocked by Ankara, joined NATO in April.

Sweden says it has fulfilled all the conditions of a three-way pact with Türkiye and Finland struck in Madrid in June last year to smooth the path to NATO membership.

World

Russia and China to Continue Expanding Military Cooperation

Russian Chief of the General Staff Valery Gerasimov. (AFP/Getty Images)
Russian Chief of the General Staff Valery Gerasimov. (AFP/Getty Images)
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Russia and China to Continue Expanding Military Cooperation

Russian Chief of the General Staff Valery Gerasimov. (AFP/Getty Images)
Russian Chief of the General Staff Valery Gerasimov. (AFP/Getty Images)

Russia and China will continue to expand their military cooperation, Russian Chief of the General Staff Valery Gerasimov was quoted as saying on Friday by the TASS news agency.

Gerasimov has invited his Chinese counterpart to visit Russia, news agencies reported.

"The practice of joint operational and combat training of the Russian and Chinese Armed Forces should remain an important area of further activities," Gerasimov was quoted as saying.

World

France Hails ‘Backpack Hero’ Who Fought Annecy Knife Attacker 

09 June 2023, France, Annecy: People place flowers near the scene at a lakeside park following a knife attack in Annecy. (dpa)
09 June 2023, France, Annecy: People place flowers near the scene at a lakeside park following a knife attack in Annecy. (dpa)
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France Hails ‘Backpack Hero’ Who Fought Annecy Knife Attacker 

09 June 2023, France, Annecy: People place flowers near the scene at a lakeside park following a knife attack in Annecy. (dpa)
09 June 2023, France, Annecy: People place flowers near the scene at a lakeside park following a knife attack in Annecy. (dpa)

France is calling him "the backpack hero", a young Catholic pilgrim on a walking tour of cathedrals who came face to face with the man who stabbed several children in a park in Annecy.

Henri, a 24-year-old management and philosophy student, was near the playground in Le Paquier park when he saw the man attacking children in a stroller as their mother desperately tried to shield them on Thursday.

Video footage shows him trying to block the assailant with one of his two backpacks, pursuing the man into the playground and throwing one of his bags at the attacker.

So far, most of France only knows him by his first name. That is all there is on his social media accounts and police have not gone into more detail.

French media have simply called him "héros au sac à dos" (the backpack hero). His only public comment so far - the message "Pray for the children, I am ok," on his Facebook page.

Europe 1 Radio said Henri would meet President Emmanuel Macron later on Friday.

Four toddlers and two pensioners were stabbed in a knife attack in the tranquil French mountain town on Thursday. Authorities said the main suspect was a Syrian refugee.

A video of the attack, taken by a bystander and verified by Reuters, showed the assailant jump a low wall into a children's playground and repeatedly lunge at a child in a stroller, pushing aside a woman who tries to fend him off, while Henri pursues him and hits him with his backpack.

He is then seen pursuing the assailant across the wide expanse of the Le Paquier grasslands, dropping one of his backpacks to run faster, as police also start giving chase.

Henri's Facebook and Instagram accounts were flooded with messages giving thanks for his actions.

"May God bless you ... you did what you could at that moment, you did not give up, you did not run. You are an angel," Instagram user Mag Capone wrote on his site.

World

Erdogan Names Erkan to Head Türkiye Central Bank

Hafize Gaye Erkan. Photo: Bloomberg
Hafize Gaye Erkan. Photo: Bloomberg
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Erdogan Names Erkan to Head Türkiye Central Bank

Hafize Gaye Erkan. Photo: Bloomberg
Hafize Gaye Erkan. Photo: Bloomberg

President Tayyip Erdogan on Friday appointed Hafize Gaye Erkan, a finance executive in the United States, to head Türkiye's central bank as it prepares to reverse course and tighten policy after years of rate cuts and a simmering cost-of-living crisis.

Erkan, former co-CEO at First Republic Bank and managing director at Goldman Sachs, takes the reins after Erdogan's re-election on May 28 and just under a week after he signaled a pivot away from unorthodoxy with a new cabinet.

The fifth central bank chief in four years, the 43-year-old replaces Sahap Kavcioglu, who spearheaded Erdogan's rate-cutting drive that set off a historic currency crash in 2021 and sent inflation to a 24-year peak above 85% last year.

The announcement of Erkan's appointment in the Official Gazette was accompanied by a decision to appoint Kavcioglu as head of the country's BDDK banking watchdog.

Erkan's leanings are unclear given she has no formal monetary policy experience in her career spanning Wall Street and US corporate boardrooms. She has a Ph.D. from Princeton University in financial engineering.

She was at First Republic from 2014-2021, according to her LinkedIn profile. This year, it became the largest US bank to fail since 2008 after it was seized by regulators and sold to JPMorgan.

Türkiye 's central bank has had its independence all but stamped out in recent years by Erdogan. A self-proclaimed "enemy" of interest rates, he pressed it to deliver stimulus and was quick to replace governors.

The policy rate was slashed to 8.5% from 19% in 2021, leaving real rates deeply negative and the lira largely managed by dozens of regulations covering credit and foreign exchange. Yet after Erdogan survived his toughest political test in the May 28 runoff vote, he on Saturday named Mehmet Simsek, a well-respected and orthodox former finance minister, as minister in charge of the economy.

Amid record low foreign reserves of -$5.7 billion, the lira has hit all-time lows this week, plunging 7.2% on Wednesday, and traded at 23.5010 against the dollar after Erkan's appointment.

According to Reuters, analysts said the return of Simsek and the appointment of Erkan set the stage for rate hikes, which could reattract foreign investors after an exodus in recent years.

The apparent U-turn on the economy comes as many analysts anticipate turmoil given depleted foreign reserves, unchecked inflation and wide current account deficits.

The economy's prospects depend on how much independence Erdogan grants Erkan and Simsek, analysts said. In the past, he has embraced orthodoxy, only to quickly double back.

The last central bank governor to raise rates, Naci Agbal, was fired in 2021 after less than five months on the job.

"It is unclear for how long Erdogan may tolerate a more pragmatic stance on the economic front, given the priority he assigns to the March 2024 local elections," said Wolfango Piccoli of Teneo. The ruling AK Party aims to recapture big cities from opposition control in those elections.

Erkan is on Marsh McLennan's board and was named CEO at Greystone, a real estate finance and investment firm, last year.

During her career in New York City, she gained a reputation as "tough, smart, and effective," said Kathryn Wylde, CEO of the Partnership for New York City nonprofit, where Erkan once served as a director.