Central Bank, Public Banks Come Under Authority of Erdogan’s Son-in-Law

In a new controversial decree, Central Bank and other public banks have come under the direct authority of President Recep Tayyip Erdogan‘s son-in-law Berat Albayrak who now leads the newly combined Ministry of Finance and Treasury.

While international markets and investors are still jittery over Erdogan’s appointment of his son-in-law as the chief of Turkey’s economy, the new decision casts serious doubts on the independence of Central Bank.

In late May, nearly a month before the June 24 elections, President Erdogan stirred up fresh concerns among investors by his remarks suggesting his intention to interfere in the monetary policies of the Central Bank.

The independent decision-making of the bank is regarded as a cardinal principle in market economies.

Central Bank, Halkbank, Ziraatbank, Vakiflar Bankasi and Turkish Development Bank will not be under the authority of Finance and Treasury Minister Albayrak.

Erdogan Names Son-in-Law Albayrak As Economy Chief in New Cabinet