Erdem Ba

Ankara has been seeking ways to calm the markets as the Turkish Lira has plunged to historic lows in recent weeks amid a potential U.S. interest rate hike pushing the dollar to multi-year highs and concerns about political pressure on Turkey?s Central Bank.

Turkish Economy Minister Nihat Zeybekci has said he does not see a need for the Central Bank to intervene in the foreign-exchange market amid severe fluctuations in the markets.

The Central Bank should have cut interest rates before its monetary policy committee meeting in February, he said March 10 in comments during a televised interview.

Prime Minister Ahmet Davuto?lu has held meetings with the chiefs of key monetary and financial institutions, including the Central Bank governor, shortly after returning from New York where he had sought to assure investors spooked by President Recep Tayyip Erdo?an?s recent tirades against the Central Bank.

Turkish Prime Minister Ahmet Davuto?lu met Central Bank governor Erdem Ba?ç? and senior economy officials late on March 7 following his arrival back from New York to discuss the lira's weakness, sources at the premier's office said.
   

In a surprise move, Turkish President Tayyip Erdo?an told journalists on Friday that he would be happy if former President Abdullah Gül returned to the ranks of the ruling Justice and Development Party (AK Parti) for active politics. Erdo?an also added that last week the two had a telephone conversation.

Turkish authorities have scrambled to stem the markets' rush to the U.S. dollar by issuing smoother statements about the Central Bank, after the Turkish Lira plunged to a series of historic lows.

When Turkish President Tayyip Erdo?an began a new wave of statement against the Central Bank on Jan. 16, roughly one-and-a-half months ago, one U.S. dollar was worth 2.30 Turkish Liras (TL).

Prime Minister Ahmet Davuto?lu has sought to reassure some of the world's leading investors about political and economic stability in Turkey during his meetings in New York. His bid to brush off escalating concerns about the investment climate in Turkey follow a series of increasingly strident remarks from President Recep Tayyip Erdo?an about the Central Bank's policies.

We already knew that President Recep Tayyip Erdo?an and Deputy Prime Minister Ali Babacan were not in total agreement about the policies applied, but we recently learned that there was a huge fundamental difference. Erdo?an is continuing to openly and publicly accuse, with harsh words, Babacan and Central Bank President Erdem Ba?ç??s policies.

One the recurrent themes in contemporary Turkish politics is President Recep Tayyip Erdo?an?s uneasiness with Turkey?s Central Bank. In the past six months, Erdo?an has repeatedly called on the institution to lower interest rates, but the Central Bank has by and large resisted this political pressure.