New governor for the central bank approved
Güncelleme Tarihi:
Weeks of uncertainty on the Turkish financial markets came to an end on Tuesday as Turkish President Ahmet Nedet Sezer approved the new governor of the Central Bank. The move calmed financial markets, which were concerned over continued friction between the staunchly secular president and the Islamic-rooted ruling Justice and Development Party's (AKP), after the president's rejection of a previous candidate who managed a finance group that operates according to Islamic rules.
Durmus Yilmaz, a board member of the central bank, became the new governor after President Ahmet Necdet Sezer approved the nomination, according to Ali Babacan, the economic minister.
Sezer's rejection last month of the government's previous candidate was a setback for Prime Minister Tayyip Erdogan's ruling Justice and Development Party, which has its roots in the country's Islamic movement.
The appointment of Yilmaz, who was educated in England and joined the Central Bank in 1980, was seen as an assurance that the bank would not deviate from its tight monetary policy.
Yilmaz must bring down inflation to 5 percent by the end of this year to meet the target set out in Turkey's International Monetary Fund-backed loan accord. He will also face pressure from exporters and manufacturers for lower rates to weaken the currency.