This is how the foreign press saw the new governor of the Central Bank, Gaye Erkan
Hafize Gaye Erkan has been appointed director of the Central Bank (CBRT). Following the appointment, the international financial press also showed great interest in Erkan.
Erkan, who holds senior positions in the US banking industry, took over from Şahap Kavcıoğlu with today’s appointment decision. The appointment of Erkan, the CBRT’s first female president, came shortly after Mehmet Şimşek was inducted into the cabinet as Minister of Treasury and Finance.
Erkan, who held management positions at US-based First Republic Bank for 8 years, previously spent 10 years at Goldman Sachs. Erkan, who was most recently on the Marsh McLennan Board of Directors, received his PhD from Princeton University in educational life from him after Boğaziçi University.
On the other hand, there are various concerns in the markets as Erkan, who is the fourth president in the last five years, has no experience in monetary policy in his career covering the boards of companies on Wall Street and the US.
Experts speaking to international financial agencies are also cautious about Erkan’s appointment.
THE MARKET ASKS HOW ERKAN WILL HAVE AUTHORITY
According to Beril Akman news from the US financial agency Bloomberg, Erkan’s appointment can be seen as a sign of normalization of the markets after Turkey’s long low-interest policy.
Nick Stadtmiller, an emerging markets expert at consultancy Medley Global Advisors, believes Erkan’s success will depend on how much autonomy he will have under Erdogan.
According to Bloomberg, Stadtmiller said: “We hope Erkan’s appointment marks an improvement on his predecessor’s policies. The real question is whether Erdogan will allow the Central Bank to raise interest rates enough to reduce inflation,” he said.
Brendan McKenna, strategist at US bank Wells Fargo, said: “I remain cautious that monetary and economic policy will shift in a more investor-friendly direction as long as Erdogan stays at the wheel.”
THERE ARE GREAT CHALLENGES
The British financial daily Financial Times, in its news headlined ‘Erdogan appoints ex-Goldman Sachs banker to head Central Bank’, claimed that this appointment is the latest sign that the course may change with respect to current policies.
According to the report, the appointments fueled cautious optimism that Erdogan would move towards a more traditional policy. The news also pointed to the depleted reserves of the Central Bank and claimed that Erkan would have to deal with significant danger to the Turkish economy.
Erik Meyersson, chief emerging markets strategist at Swedish bank SEB, said the appointment of former central bank governor Şahap Kavcıoğlu to a new post is critical. According to Meyersson, this is a sign that Erdogan can return to his old economic policies at any time.
NOT SOMEONE WHO CAN BE PUSHED
The British news agency Reuters interpreted the appointment of Erkan as head of the Central Bank as a sign of a return to traditional policies.
In the news, “Erdogan has appointed Hafize Gaye Erkan, the US chief financial officer, to head the Central Bank, which is preparing to reverse course and toughen policy after years of cutting interest rates and rising cost of living.”
Kathryn Wylde, executive director of the Partnership for New York City organization, where Erkan once served as a manager, told Reuters that Erkan earned a reputation for being “tough, smart and effective” during his career in New York City. . Wylde, by Erkan; “He’s definitely not one to be pushed around,” she said.
DEPENDS ON HOW INDEPENDENT ERDOĞAN WILL GIVE
Analysts say the future of the economy depends on how much independence Erdogan grants Erkan and Şimşek.
“It is not clear how long Erdogan can tolerate a more pragmatic stance on the economic front, given the priority given to local elections,” said Wolfango Piccoli, an economist at financial advisory firm Teneo.