Turkish central bank dismisses chief economist, department managers

Published: Updated:

The Turkish Central Bank has dismissed its chief economist Hakan Kara and some department managers as part of a reorganization of the bank ordered by the bank’s assembly, a document seen by Reuters showed on Friday.

The move came after President Recep Tayyip Erdogan dismissed the bank’s governor Murat Cetinkaya last month, saying he failed to follow instructions on interest rates and the bank had not properly fulfilled its role.

Among those dismissed were the bank’s research and monetary policy general manager Pinar Ozlu, markets general manager Orhan Kandar and banking and financial institutions general manager Yavuz Yeter, the document showed.

It detailed a reorganization of bank departments under the bank assembly decision taken at a meeting on Aug. 8 and showed that more than 10 people were dismissed in total.

The decision was effective from Aug. 9.

The central bank declined comment.

At its first meeting under new Central Bank Governor Murat Uysal, the bank’s monetary policy committee slashed its key interest rate by a more than expected 425 basis points to 19.75% to spur the recession-hit economy.

Erdogan, a fierce critic of high interest rates, has repeatedly called for lower borrowing costs to boost the economy.

The lira was slightly firmer at 5.4680 against the dollar after the latest central bank move.