Turkey: in the midst of an economic storm, Erdogan replaces his Minister of Finance
Contrary to most economic theories, the Turkish president continues to say that the economic and financial collapse is due to the rise in key rates.
Here, a customer is exchanging Turkish liras for dollars and euros in Ankara on November 23, 2021. AP - Burhan Ozbilici
Text by: RFI Follow
1 min
While the Turkish economy remains in turmoil, due to the collapse of the currency and galloping inflation, President Recep Tayyip Erdogan announced, Wednesday, December 1, to change the Minister of Finance.
Lütfi Elvan, who had held this post for a year, leaves the place to his deputy, Nureddin Nebati.
Different from his predecessor, the new minister had defended the policy of lowering interest rates advocated by the Head of State, in opposition to the main economic theories.
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With our correspondent in Istanbul,
Anne Andlauer
Lütfi Elvan's resignation - since it is officially a resignation - did not surprise anyone in Turkey.
It had been said on the departure for a month, to such an extent that the presidency had had to deny the rumors.
In mid-November, before his parliamentary group, Recep Tayyip Erdogan denounced "
those among our friends who defend interest rates
".
Present in the audience, Lütfi Elvan was the only one not to applaud the speech
The Turkish head of state
argues that high interest rates cause inflation
, contrary to what most economists claim.
Since September, the Central Bank has cut its key rate three times, causing the pound to fall against the dollar, while inflation is close to 20% over one year.
Lütfi Elvan had been Minister of Finance since November 2020. At the time, the appointment of this economist had been welcomed by many analysts, especially since he had replaced Berat Albayrak, Tayyip Erdogan's son-in-law.
The new minister, Nureddin Nebati, has no training in economics.
A few days ago, on Twitter, he defended the lowering of rates, calling it "a
struggle for the independence of our economy
".
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To read also:
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