CHP slams the removal of central bank chief

ANKARA

Main opposition Republican People’s Party (CHP) spokesperson Faik Öztrak on July 8 slammed the removal of Central Bank chief, Murat Çetinkaya from his post by a presidential decree, saying his removal will lead to major problems in the long-run.

“Removal of the central bank chief has happened for the first time since 1931, when it came into effect. We have experienced this, too, during the single-man regime.  This regime has done the things even military coups could not. What has been done is neither normal nor ordinary,” he said after a Central Executive Board (MYK) meeting in the capital Ankara.

“Those doing this know that this is not normal. That’s why they executed this operation at a time when both Turkey’s and the world’s markets were closed down,” he said.

The independence of the central bank is secured under law, yet Çetinkaya’s removal was grounded on a decree-law from the state of emergency period, Öztrak said.

“Removal of Çetinkaya officially put an end to the independence of the central bank. Now, the single-man regime will be able to put in effect self-proclaimed interest rate theories,” he said.

“This is being done by pushing the boundaries of law. The president carried out this removal by violating his own Constitution,” he added.

If Çetinkaya decides to go to court, it is highly possible that this decision will be overturned, the CHP spokesman said.

“The justification for this controversial operation is failure to reach institutional targets. The objective of the central bank is price stability. So is today’s inflation rates the sole responsibility of Çetinkaya?” Öztrak questioned.

Çetinkaya’s removal paved the way for an “erosion of trust,” according to Öztrak. The decision will cause financial troubles for Turkish citizens, he added.

The most significant asset of a central bank is its “trustworthiness,” he said, adding that the central bank also does not hold enough foreign currency reserves to compensate possible fiscal shocks.

Çetinkaya was removed from his post with a presidential decree published early on July 6, the Official Gazette showed.

Çetinkaya, whose four-year term was due to run until 2020, will be replaced by his deputy, Murat Uysal.