The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.
Opinion

Investors are right to be rattled by Turkey’s central bank purge

The gradual erosion of institutional credibility could prove more damaging to Turkey than economic and political shocks.

Murat-Uysal-Turkey-CB-R-780.jpg

Murat Uysal, Turkey's new central bank governor



As autocrats around the world are well aware, emerging-market investors love stability. Give them a competent strongman with a dubious human rights record over a chaotic democracy any day.

A notable beneficiary of this phenomenon in recent years has been Recep Tayyip Erdogan, Turkey’s authoritarian president.

His firm grip on power – along with excellent demographics and a sturdy banking sector – has helped persuade investors to keep faith with Turkey through an attempted coup, successive stand-offs with Russia and the US, and last summer’s currency crisis.

So far, so good for the Turkish economy – if not for the academics, journalists and others who have got on the wrong side of the regime.

Confidence

The only problem is that investors don’t only prefer continuity in the presidential palace – they also want to see it in key institutions.

They like to see the same faces on roadshows and to get to know officials. Above all, they want to be confident there are at least one or two steady hands at the helm of the economy and that not all key policymakers are political placeholders.




You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree