Turkish lira fell to a record low against the US dollar on Thursday after President Recep Tayyip Erdogan sacked three central bank members in a late-night decree.
Gatekeepers News reports that Erdogan removed two deputy governors and a member of the monetary policy committee hours after he met the bank’s governor, Sahap Kavcioglu.
It was gathered that one of the affected persons, Ugur Namik Kucuk, was the only member of the bank’s seven-member monetary policy committee to oppose a rate cut that shocked international investors in September.
Kucuk had also opposed the controversial policy of selling off the bank’s foreign currency reserves in an unfortunate bid to support the lira, according to one Istanbul-based banker.
While the second sacked deputy governor, Semih Tumen, had been rumoured to be in line to succeed Kavcioglu.
The Turkish lira fell overnight by around one percent to 9.19 to the dollar, a record low, before rallying to 9.13 in the afternoon.
Gatekeepers News reports that emerging market currencies are weakening across the world on expectations that the US Federal Reserve and European Central Bank will soon start raising interest rates, making their assets more attractive.
It is believed that Turkey’s currency is falling faster due to political concerns about Erdogan.
