Turkish Central Bank with a new boss: What does the change at the top mean for financial policy?

Turkish Central Bank with a new boss: What does the change at the top mean for financial policy?

According to a report by www.faz.net the Turkish central bank has a new boss. Fatih Karahan was appointed as the new head of the central bank after the previous head, Hafize Gaye Erkan, unexpectedly resigned. Erkan, 44, had come under pressure over allegations of nepotism that led to her resignation. Her successor, the 42-year-old former Fed banker, faces a challenge as Turkish inflation remains extremely high.

Inflation in Turkey is currently around 65 percent and threatens to rise further. The weak local currency, the lira, makes imports into Turkey significantly more expensive, which further fuels inflation. The new central bank chief Karahan is faced with the task of taking measures to combat inflation and stabilize the national currency.

Karahan's appointment could create uncertainty in the market as investors and industry experts wait to see what strategies he will pursue to ensure economic stability in Turkey. The impact of his decisions will be instrumental in regaining investor confidence and supporting the country's economic recovery.