Editorial: Bank woes – but not in SA

Turkish President Recep Tayyip Erdogan fired his country’s central bank governor, Murat Çetinkaya, last Saturday. Days later he launched a scathing attack on the former governor, describing him as “our colleague who wouldn’t follow instructions”.

The president noted that a new system of governance that came into force last year had awarded him authority to “intervene” in the bank, according to a Financial Times report. “From now on, the central bank will provide stronger support for our economic programme,” Erdogan said.

The decision to sack the governor confirmed some of the worst fears about Erdogan’s control over the country’s policies, and the erosion of independence at the central bank.

But the most striking aspect of Erdogan’s remarks on the matter was his confirmation that it was his son-in-law, Finance Minister Berat Albayrak, who had spearheaded the removal of the central bank governor. “Our colleagues, notably the treasury and finance minister, carried out an assessment. After this assessment, we decided that a change would be beneficial,” he said.

Erdogan claims that there was a difference of opinion on interest rates that had informed the decision to sack the former governor. Whatever it was, Turkey is in some trouble and has been for more than a year now after a currency crisis wiped 30% off the value of the lira.

We have our own problems in South Africa — not least a fashionable debate over the role and independence of the Reserve Bank. So it’s some consolation that the president doesn’t have his son-in-law running the treasury. And also that he’s renewed the contract of Lesetja Kganyago.

We make it make sense

If this story helped you navigate your world, subscribe to the M&G today for just R30 for the first three months

Subscribers get access to all our best journalism, subscriber-only newsletters, events and a weekly cryptic crossword.”

Related stories


Already a subscriber? Sign in here


Latest stories

In the black void of missing bodies

We cannot allow the mathematics of racial capital stop us from bearing ethical witness to the death of the marginalised majority

Zondo must lead to real change

He was horrified about what he learned of the ANC and government — and we should be too

South Africa, Kenya and Morocco invest in electric car charging...

As demand for electric cars rises on the continent, public and private sector investors are lining up a series of charging stations on major highways, entertainment and recreation spots including those outside capital cities

Pumping of acidic mine water on East Rand delayed —...

The plant’s closure means that a tide of toxic mine water is rising significantly underground, which could decant into the environment within months

press releases

Loading latest Press Releases…