The Turkish Minister for Treasury and Finance quit his post as the Turkish Lira (TL) continued losing value against foreign currencies, accompanying the Turkish president’s rhetoric of a ‘war of economic liberation’ and repeated targeting of ‘the high interest rate.’
Lütfi Elvan, whose resignation became public on Wednesday night, has been replaced by his deputy Nurettin Nebati, who is not expected to be in any kind of conflict with President Recep Tayyip Erdoğan, as opposed to his predecessor who had not been enthusiastic about lowering policy interest rates.
Atilla Yeşilada, a prominent economist in Turkey, called the new minister ‘Albayrak’s protégé’ on Twitter, referring to Erdoğan’s son-in-law Berat Albayrak who had served as the Minister for Treasury and Finance between July 2018 and November 2020, and who had become a champion of a low policy interest rate, totally in line with his father-in-law. In his 28-month term, the Turkish currency depreciated 39% against the Euro and 38% against the US Dollar (USD).
Another economist, Mustafa Sönmez, commented on the replacement of the minister too, saying, “It’s like the sinking of the Titanic. It is to everyone’s benefit that this doesn’t take too long.”
The new minister is a former MP for the ruling Justice and Development Party (AKP) and a businessperson with no academic background in economy.
After his appointment, the US Dollar rose from slightly below 13.30 TL to 13.43 TL around noon on Thursday, while the Euro rose from 15.08 TL to 15.23 TL.
In a single month, the US Dollar has risen from 9.64TL on 2 November to 13.43 TL on 2 December, appreciating by 39%, as the Euro also rose from 11.20 TL to 15.23, appreciating by 36%.