Turkey’s Constitutional Court strips the president of the power to remove the central bank governor

Rhino: Agencies – Turkey’s Constitutional Court has stripped the country’s president of the power to remove the central bank governor before the end of his term, paving the way for possible greater stability after years of policy change, according to a decision published in Turkey’s official gazette on Tuesday.

The Constitutional Court cancelled a decree law issued by President Recep Tayyip Erdoğan in 2018 that allowed him to appoint and dismiss the central bank governor and his deputies.

The court said the matter should be regulated by law and that the decision would come into effect within 12 months, giving parliament the opportunity to pass a law during this period.

Erdogan has dismissed five central bank governors in the past five years, undermining the institution’s independence, raising concerns about its dysfunction, and leading to a policy of increased cash flows that has weakened the lira and fueled inflation.

Erdogan in February appointed the current governor, Fatih Karakhan, who has maintained the strict monetary tightening regime that began with a radical shift in policy in June last year.

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