CHP submits law proposal to ‘enhance Central Bank independence’

ANKARA

The Republican People’s Party’s (CHP) group deputy chair has submitted the party’s law proposal to the parliament in an effort to “amend the law on the Central Bank of the Republic of Turkey, ” CHP spokesperson Faik Öztrak said on May 3.

The proposal is the same as the legislation that was adopted at the parliament for recovery of the 2001 economic crisis and aims to “enhance the independence of the Central Bank,” Öztrak said at a press conference.

“At the time when the Central Bank reserves are commended to a politician, this legislation has to be adopted,” he stated.

Öztrak recalled that the Nationalist Movement Party (MHP) leader Devlet Bahçeli had signed the law proposal at the time. He said they expect that the nationalist leader would lay claim to his previous signature.

In the justification of the CHP’s law proposal, it was stated that the independence of the Central Bank was “destroyed” with the changes made after 2017, pointing out that interest and inflation increased due to the “wrong policies” followed and that despite the sales of 128 billion dollars from reserves, the increase in foreign currency and interest could not be prevented.

The proposal also suggests increasing the term of office of the Central Bank governor from four to five years and making his dismissal difficult.