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Turkey’s Erdogan has replaced the finance minister in the midst of a financial crisis | Business and Economic Affairs

Nureddin Nebati takes over after Finance Minister Lutfi Elvan resigns.

Turkish President Recep Tayyip Erdogan replaces the country’s finance minister after weeks of economic turmoil as inflation soared and the currency plummeted.

The currency has lost more than 40 percent of its value compared to the US dollar this year, making it a success the worst evildoer of all emerging market currencies.

According to a presidential decree issued at midnight on Wednesday, Erdogan agreed to resign from Lutfi Elvan and appoint his deputy, Nureddin Nebati, as the new finance minister.

Nebati, 57, holds a bachelor’s degree in public administration and a master’s degree in social science from the University of Istanbul. He also holds a doctorate in political science and human resources from Kocaeli University in Turkey.

The incumbents have been in office since November 2020, when they were elected after the resignation of Erdogan’s brother-in-law, Berat Albayrak.

Elvan’s year-long reign was marked by many hardships.

Earlier Wednesday, the Central Bank of Turkey intervened in the markets to support the lira, which lost about 30 percent of its value compared to the dollar in just one month.

Under pressure from Erdogan, Turkey’s largest independent bank cut its interest rates in November for the third time in less than two months. It did so even though inflation was approaching 20 percent – four times what the government wanted.

Erdogan believes high interest rates are causing prices to rise – in stark contrast to the regular economic sentiment – and has pushed for lower prices.

The Turkish currency plummeted to more than 14 dollars before it recouped some of its losses Wednesday after the central bank resorted to selling stocks. One dollar bought a 13.22 lira starting Wednesday afternoon.

The recovery, however, was short-lived after Erdogan appeared again to defend his “new financial model” against “anxiety of interest”.

Since 2019, Erdogan has fired three central bank ambassadors opposed to low interest rates. The president, who has said that the lira crisis is hurting Turkey’s economy and its allies in the country, believes that lower prices will offset inflation, boost economic growth, export electricity and create jobs.

On Tuesday, statistics showed the Turkish economy and 7.4 percent in the third quarter, compared with the previous year, but some experts believe that the increase may be temporary as a result of rising inflation and inflation.

Meanwhile, public dissatisfaction seems to be growing.

Last week, protests against economic policies in the capital Istanbul and the capital Ankara, as the opposition Republican People’s Party prepares for Saturday’s by-elections in the southern city of Mersin.




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