Turkish Central Bank Governor Hafize Gaye Erkan Resigns

Hafize Gaye Erkan has asked to be relieved from her duties as Turkish central bank governor, according to a social media post on her personal X account.

Erkan cited an apparent defamation campaign against her and said she was resigning to protect her family including her baby. Local media reported last month allegations that Erkan’s family was involved in the central bank’s affairs. Erkan had denied the allegations.

The Turkish lira weakened after the news, falling 0.6% to 30.5163 against the dollar as of 10:20 p.m. in Istanbul, a record low on a closing basis. The currency has depreciated by about 23% since Erkan and Treasury and Finance Minister Mehmet Simsek were appointed by President Recep Tayyip Erdogan in June to lead an investor-friendly overhaul of Turkey’s economic policies, which included raising interest rates aggressively and letting the currency trade more freely in an effort to attract foreign investment.

The Turkish Treasury and Finance Ministry said Erkan’s decision was “entirely personal and at her own discretion.” Erdogan “has full confidence and support in our economy team and our program,” the statement said.