The Central Bank of the Republic of Turkey has once again witnessed a change in its governorship.[3]&nbsp; As has been the trend for nearly the past decade, this transition was also marked by upheaval. On February 2, former Central Bank Governor Hafize Gaye Erkan took to social media, stating, "As the public is aware, there has been a significant smear campaign against me in recent times. In order to shield my family, and particularly my innocent child, who has not even reached one and a half years of age, from further distress caused by this ordeal, I have respectfully requested President [name] to relieve me of my duties, which I have fulfilled with integrity since day one.[4] Of course, her explanation is much longer (see footnote). In particular, the nationalist overtones in his statement were striking and, in many ways, unnecessary.The phrase "a major campaign of reputation assassination against me" from Erkan's statement is particularly noteworthy, as it refers to an interview he gave on December 16, 2023 and the subsequent reactions it elicited.[5] The interview became a focal point of Turkish public opinion and drew criticism from many economists, myself included. The crux of the criticism centered on the fact that the interview did not adhere to the norms and conventions of effective communication, a critical aspect of central banking. As is well-established, central banks primarily influence the market through financial instruments. However, verbal guidance also holds significant sway. Verbal guidance is essential for managing and shaping expectations, as actions alone may not suffice. In this context, Erkan's interview was highly unusual. It appeared more akin to an interview with an investment banker rather than that of a central bank governor.Following these criticisms, even more bizarre allegations surfaced. To summarize succinctly, there were claims suggesting that Hafize Gaye Erkan's father maintained a consistent presence at the Central Bank, was assigned a separate room, and was involved in the daily administrative operations of the Bank, among other things. As an economist and a citizen of the Republic of Turkey, I personally observed these allegations with a sense of embarrassment. However, these allegations did not remain mere speculations, as some employees of the Central Bank came forward to corroborate them. Naturally, as reactions intensified, President Erdoğan made a statement asserting his support for the "interest rate policy." While many interpreted this statement as President Erdoğan defending Erkan, it was perceived by some as a strategic move to ease tensions. It was widely believed that Erdoğan would eventually remove Erkan from his position, considering him a liability, when the time was deemed appropriate.Indeed, Erkan was dismissed on February 3 and replaced by his deputy, Fatih Karahan, a former New York Fed employee and former Amazon chief economist. Fatih Karahan is widely recognized as highly competent in central banking and economics. However, it is crucial to acknowledge the broader context: No central bank governor appointed since Turkey transitioned to an Erdoğan-type presidential administration has been able to complete their term in office. In the six years from 2019 to 2024 alone, six Central Bank governors were appointed and subsequently dismissed by President Erdoğan. Therefore, while Fatih Karahan may be a capable economist, the extent of what he can achieve may be constrained by President Erdoğan's tolerance of Şimşek's program.We experienced a very interesting example of the collapse of Turkey's institutions with the recent change of the CBRT governor. Who knows which people in which institutions experience similar absurdities every day? However, since the CBRT is a very visible institution, we were able to follow these problems. Institutions in Turkey continue to collapse not only in terms of rules or in the political science sense but also physically.<hr fr-original-style="" style="height: 0px; overflow: visible; border-bottom: none; clear: both; user-select: none; break-after: page; box-sizing: border-box;"> 1&nbsp;https://seffaflik.org/wp-content/uploads/2024/01/2023-Yolsuzluk-Algi-Endeksi-Basin-Duyurusu-1.pdf&nbsp;2https://seffaflik.org/wp-content/uploads/2024/02/6-Subat-Deprem-Raporu-Kurumlar-Usulsuzlukler-ve-Seffaflik.pdf3https://www.reuters.com/world/middle-east/erdogan-appointed-fatih-karahan-turkeys-central-bank-governor-official-gazette-2024-02-02/4&nbsp;https://twitter.com/hafizegayeerkan/status/17534950121830032125&nbsp;https://www.hurriyet.com.tr/yazarlar/ahmet-hakan/vatandasin-kemeri-zaten-siki-42376770<a href="#_ftnref1" name="_ftn1" target="_blank" title="" fr-original-style="" style="color: rgb(9, 9, 9); text-decoration: none; background-color: transparent; outline: none; cursor: pointer; transition: color 0.3s ease 0s; touch-action: manipulation; user-select: auto; box-sizing: border-box;"></a><a href="#_ftnref2" name="_ftn2" target="_blank" title="" fr-original-style="" style="color: rgb(9, 9, 9); text-decoration: none; background-color: transparent; outline: none; cursor: pointer; transition: color 0.3s ease 0s; touch-action: manipulation; user-select: auto; box-sizing: border-box;"></a><a href="#_ftnref3" name="_ftn3" target="_blank" title="" fr-original-style="" style="color: rgb(9, 9, 9); text-decoration: none; background-color: transparent; outline: none; cursor: pointer; transition: color 0.3s ease 0s; touch-action: manipulation; user-select: auto; box-sizing: border-box;"></a>

The Freedom Observer

We experienced a very interesting example of the collapse of Turkey's institutions with the recent change of the CBRT governor. Who knows which people in which institutions experience similar absurdities every day? However, since the CBRT is a very visible institution, we were able to follow these problems. Institutions in Turkey continue to collapse not only in terms of rules or in the political science sense but also physically.

Another (!) Earthquake at the Central Bank

<img src="https://images.aposto.com/2022/5/0/1656251704723.png" style="display: block; vertical-align: top; margin: 5px auto; text-align: center; width: 100%; max-width: 550px; border-style: none; position: relative; cursor: pointer; padding: 0px 1px; box-sizing: border-box;" width="550" alt="Markets Recap" ratio="1.98" fr-original-style="display: block; vertical-align: top; margin: 5px auto; text-align: center; width: 100%; max-width: 550px;" fr-original-class="fr-draggable">Year-to-date price changes. Prices at markets close.• Recession fears creep into the markets this week as the inflation prints continue to roll out with the US releasing its PCE data and the EU releasing its June preliminary CPI. Following last week's PMI flashes, we'll get to see the final readings of the PMI data for June this week as well.<ul fr-original-style="padding-inline-start: 20px;" style="padding-inline-start: 20px; margin-top: 0px; margin-bottom: 1em; list-style-position: inside; box-sizing: border-box;"><li fr-original-style="" style="box-sizing: border-box;">Monday ECB President Lagarde, Fed Chair Powell, BOE Gov Bailey to speak at ECB Forum on Central Banking; US durable goods; China industrial profits</li><li fr-original-style="" style="box-sizing: border-box;">Tuesday Germany Gfk consumer confidence; US wholesale inventories, Conference Board consumer confidence;&nbsp;</li><li fr-original-style="" style="box-sizing: border-box;">Wednesday NATO summit starts in Spain; Eurozone economic confidence, consumer confidence; US Q1 GDP; Germany preliminary CPI; Russia unemployment; OPEC meeting; EIA crude oil inventories;&nbsp;</li><li fr-original-style="" style="box-sizing: border-box;">Thursday Eurozone, Germany unemployment; France CPI; UK, Czechia GDP; US personal income, spending; Sweden interest rate decision; China PMI</li><li fr-original-style="" style="box-sizing: border-box;">Friday Global manufacturing PMIs; Eurozone CPI flash; Japan unemployment, Tokyo CPI.</li></ul>

Aposto World

<a target="_blank" rel="noopener noreferrer" href="https://kriptokurator.substack.com/">Kripto Küratör</a>• Libra Birliği'nin başkan yardımcısı Dante Disparte, Libra teknik kılavuzunu Haziran 2019'da <a target="_blank" rel="noopener noreferrer" href="https://cointelegraph.com/news/facebook-releases-cryptocurrency-white-paper-for-libra-currency">yayımladığından</a> bu yana <a target="_blank" rel="noopener noreferrer" href="https://cointelegraph.com/explained/stablecoins-explained">stabil kripto paraların</a> blockchain mimarisine dayandığını açıkladı. Disparte, finansal yayın Central Banking ile 28 Nisan'da yaptığı&nbsp;<a target="_blank" rel="noopener noreferrer" href="https://www.centralbanking.com/fintech/cbdc/7533891/libras-disparte-on-big-techs-move-into-digital-currency">röportaj</a>&nbsp;sırasında blockchain uygulamasının sağladığı bazı yapısal yararlara değindi. Yönetici, teknolojinin ödeme teknolojilerinde birlikte işlerlik sağlama potansiyeli olduğunu <a target="_blank" rel="noopener noreferrer" href="https://tr.cointelegraph.com/news/blockchain-not-crypto-is-at-core-of-facebooks-libra-vice-chair-says">ileri sürdü</a>.• Çin hükümetinden çeşitli yetkililer ve kuruluş başkanları, 25 Nisan'da Pekin'de bir araya geldikleri toplantıda Blockchain Tabanlı Hizmet Ağı (BSN)’in beta testin başlamasının ardından altı ay sonra halka açık olarak başlatıldığını duyurdu. Habere göre 2 binden fazla geliştirici, BSN'i beta sürümünü denedi. BSN üzerindeki geliştiriciler, kamu refahına yardım, ürün takip edilebilirliği ve elektronik fatura üzerine uygulamalar <a target="_blank" rel="noopener noreferrer" href="https://tr.cointelegraph.com/news/china-launches-blockchain-based-service-network-for-global-commercial-use">oluşturdu</a>.• Quantum Economics kurucusu Mati Greenspan, Bitcoin ile S&amp;P 500 borsası arasındaki korelasyonun 9 yılın zirvesine ulaştığını söyledi. <a target="_blank" rel="noopener noreferrer" href="https://coinmetrics.io/">Coinmetrics</a>'ten derlenen Greenspan verilerine göre, BTC ile S&amp;P 500 şu anda yaklaşık 0,6'lık bir korelasyon <a target="_blank" rel="noopener noreferrer" href="https://tr.cointelegraph.com/news/mati-greenspan-bitcoins-correlation-with-sp-500-at-9-year-high">gözleniyor</a>.• 2020 yılı ile birlikte kripto para sektöründe türev işlem rüzgârı, iyice hissedilmeye başladı. TokenInsight’ın yayımladığı rapora göre kripto para türev işlemlerine görünün hacim artışı, dikkate değer. Sadece 3 ay içerisinde %314’lük bir artış yaşayan hacim, 2020’nin ilk çeyreğinde 2,1 trilyon dolara <a target="_blank" rel="noopener noreferrer" href="https://muhabbit.com/yatirimcilar-turev-islemlere-yoneliyor-yuzde-314-artis/">ulaşmış durumda</a>.

Central Banking ile ilgili hikayeler