Turkey’s finance ministry has resigned and was replaced by a trustee of President Recep Tayyip Erdogan as the crisis continues.
Lutfi Elvan, who appeared to be the last word on the economic crisis in Turkey’s prime minister, has called for his removal, according to a state-run newspaper.
After weeks of rumors of resignation, the former technocrat was replaced by Nureddin Nebati, who last week provided adequate public protection of Erdogan’s policy of lowering interest rates despite rising inflation.
Nebati, who served for three years as a deputy to the finance minister before the election, he said Turkey had been trying for years to adopt a cheaper plan but was strongly opposed. “This time, we are determined to do this,” he said he wrote on Twitter, I add that “there was no problem” in keeping interest rates low in modern markets.
The lira loses about 40 percent of its value since the beginning of September as Erdogan, a life-long anti-interest activist, forced the central bank to cut it repeatedly, reducing its rate to 15 percent even though annual inflation is imminent. 20 percent.
This approach has caused economists to warn that the government may be causing problems rising inflation and economic instability.
Nebati, a former businessman who changed politics, appears to be close to the son-in-law of Erdogan Berat Albayrak, who has been finance minister since 2018 in the past. resignation in November 2020 after the President announced a crackdown on central bank management.
Albayrak and Nebati were photographed eating lunch together in a restaurant in Istanbul in August.
Elvan, 59, is widely respected by the business community but has been seen as a solitary figure in recent months. He made it clear that the government still wanted to reduce inflation and maintain a stable income even though the central bank did. reduce his interest rate for the third month running in November.
Erdogan attacked Elvan for his actions last month. “We will eradicate the scourge of [high] interest from the backs of our people, “Erdogan told parliament.” Sorry to our friends [from the ruling party] who protects [high] interesting but I can’t and I won’t go the same way. “
Elvan resigned after the Turkish central bank announced that a back to the counter process intrusion into financial markets to reduce the collapse of the lira, even though foreign exchange is low.
The central bank said Wednesday that “bad prices” had led to its decision to sell strong currencies plus US dollars in support of the lira.
Turkey has not announced a direct investment intervention since it sold $ 3.2bn in early 2014. It has been widely criticized by the country’s opposition.
