What does Turkey’s latest bout of currency volatility mean for the country’s banking sector?
As usual, that was one of the first questions asked by markets after president Recep Tayyip Erdogan dispensed with yet another central bank governor on March 18.
Quite why Naci Agbal was sacked after only three months in post remains unclear. Most initially connected it with the central bank’s decision two days earlier to hike rates by a larger-than-expected 200 basis points, given Erdogan’s apparently unshakeable conviction that higher interest rates are the cause of all economic ills, including inflation.
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