Turkish financial policy: Can a woman drive central bank reform?

Turkish financial policy: Can a woman drive central bank reform?

According to a report by www.stuttgarter-nachrichten.de,

President Recep Tayyip Erdogan's appointment of Hafize Gaye Erkan as head of the Turkish central bank has caused a stir both in Turkey and internationally. Erkan, a respected financial expert with international experience, will become the first woman to head the Turkish central bank.

Erkan's appointment is being interpreted by many as a signal that Erdogan wants to signal a return to predictable financial policies to address the country's economic crisis. Together with the new Finance Minister Mehmet Simsek, who is known for rejecting Erdogan's previous financial policies, they are supposed to lead the Turkish economy out of the crisis.

However, there are doubts as to whether Erdogan is really ready to change course, as his vision of financial and economic policy contradicts the necessary reform steps. Analysts and experts fear that under Erdogan's presidential system, institutions such as the Turkish central bank do not have enough independence to end the crisis.

The appointment of Erkan and Simsek is therefore viewed with skepticism by many experts, as it is unlikely that Erdogan will be given enough time and freedom to implement the necessary reforms.

From a financial expert's perspective, the appointment of Hafize Gaye Erkan as head of the Turkish Central Bank continues to raise doubts about the institution's independence under Erdogan's government. It remains to be seen whether the new boss and the finance minister will actually be able to implement the necessary measures to deal with the economic crisis or whether they will be constrained by Erdogan's ideas about financial policy. This could have a significant impact on the Turkish market and the international financial industry.