Erdem Ba

The Turkish lira weakened to a record low above 2.53 against the dollar March 3, extending losses on the back of U.S. currency strength but with concerns about government pressure on the Central Bank to cut rates continuing to weigh on sentiment.

Turkish inflation rose slightly less than expected in February but remained significantly above the Central Bank?s target, limiting its room to make the deep interest rate cuts demanded by President Recep Tayyip Erdo?an.

Prime Minister Ahmet Davuto?lu must not remain silent after President Recep Tayyip Erdo?an charged a leading member of his cabinet with ?treason,? main opposition Republican People?s Party?s (CHP) Deputy Parliamentary Group Chair Akif Hamzaçebi said on March 2.

President Recep Tayyip Erdo?an has further ramped up his criticism of Central Bank Governor Erdem Ba?ç? and the economy administration, saying ?they should get their act together.?

At first look, the domestic economic agenda looks light this week, with purchasing managers? indices, preliminary exports and inflation being the main data releases. However, it may end up being the make-or-break week for Turkish assets, and eventually for the economy.

Some 68 percent of the Turkish population believes the Central Bank should make decisions based upon the realities of the economy, while only 17 percent believes it should make its decisions in line with President Recep Tayyip Erdo?an?s instructions, according to the latest study by the Metropoll research company.

Central Bank Governor Erdem Ba?ç?, who was rumored to have resigned on Thursday, just like Deputy Prime Minister Ali Babacan, spoke to me on the phone in a wry tone of voice. He thanked me for my ?get well soon? wishes and said he was using antibiotics. 

Turkish Central Bank Governor Erdem Ba?ç? sought to calm jittery investors on Feb. 27, dismissing rumors that he would resign and giving a brief lift to the lira currency after it tumbled to a record low.
   

Turkey has secured a discount of 10.25 percent in the price of what it pays for Russian gas, but consumers won't see any changes in their utility bills due to the current weakness of the Turkish Lira, Energy Minister Taner Y?ld?z said on Feb. 27.

Right after the Turkish Central Bank lowered its interest rate by another 0.25, the same as last month, reporters asked Prime Minister Ahmet Davuto?lu what he thought.