Turkey removes 5-year term clause for central bank governor: Reuters
Published: July 9, 2018 10:38 a.m. ET
By
Anneken
Tappe
Turkey removed a clause that set the term of its central bank's governor at five years with an option for re-appointment, according to a Reuters report. The emergency decree with the changes did not include details on an alternative term length. Investors have previously been worried about the independence of the Central Bank of the Republic of Turkey, after President Recep Tayyip Erdogan said he wanted to take more responsibility in his country's monetary policy. Erdogan, who won last month's election, was sworn in again on Monday. The CBRT is also struggling to combat double-digit inflation, which hit a 14-year high in June. Turkey's lira USDTRY, +0.6123% , which has fallen more than 20% in the year so far, weakened on Monday, flipping into negative territory following the news of the central bank term removal. One dollar last fetched 4.5932 lira, up from 4.5731 lira late Friday. The iShares MSCI Turkey ETF TUR, -0.55% was down 0.4% on Monday.
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