Erdogan Brings on New Central Bank Governor, Third in 2 Years

Posted on 03/20/2021

The Turkish lira has fallen in value, week after week.

Turkey’s President Recep Tayyip Erdogan removed the country’s third central bank governor in less than two years. Erdogan removed Governor Naci Agbal, who was appointed in November 2020, and gave the position to Sahap Kavcioglu, according to a decree published after midnight on March 20, 2021 in the Official Gazette. Sahap Kavcioglu is a professor of banking at Marmara University.

Agbal’s exodus occurred right after a 200 basis point interest rate hike by the Central Bank of the Republic of Turkey on March 18, 2021. The 200 BP rate hike caused the lira to surge on that Thursday. Agbal pledged to tame inflation and defend the currency.

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