Turkey’s central bank chief Erkan has announced her resignation. The reason is allegations of nepotism – the 44-year-old speaks of a character assassination campaign. Erkan recently raised key interest rates in Turkey sharply.
Turkish central bank chief Hafize Gaye Erkan resigns from her position. The reason was a character assassination campaign against her and her family, explained Erkan. The 44-year-old was recently accused of nepotism. She no longer wants to put her family through this situation. She therefore asked President Recep Tayyip Erdogan to be relieved of her duties, “which I have fulfilled with honor since day one,” explained Erkan.
According to media reports, Erkan’s father was provided with an office, a company car and bodyguards by the central bank. He was also allowed to make personnel decisions. Erkan, however, spoke of “accusations without any basis” that were intended to undermine trust in the central bank.
Erdogan angered by comments on the rental market
According to media reports, Erdogan was angry that Erkan had told the newspaper “Hürriyet” that she had moved back in with her parents because she had not been able to find an affordable apartment in Istanbul because of the high rents.
Finance Minister reassured
In an initial reaction to the resignation, Turkish Finance Minister Mehmet Simsek said it was Erkan’s own decision. Economic policy will continue without interruption. According to the Bloomberg news agency, Central Bank Vice Chairman Fatih Karahan is considered a possible successor to Erkan.
After his re-election last May, President Erdogan appointed Erkan as the first woman in history to head the central bank. As head of the central bank, she focused on drastic interest rate increases in the fight against high inflation. Erdogan, on the other hand, had opposed such a monetary policy for years.
Inflation in Turkey reached a long-term high of 85 percent in 2022. In December last year it was 65 percent.