Leadership instability at the Central Bank! The average tenure of the last 4 governors...
Hakan Kara, former Chief Economist of the Central Bank of the Republic of Türkiye (TCMB), shared the trend of Central Bank governors' tenures on his social media account.
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Central Bank of the Republic of Türkiye (TCMB) Governor Hafize Gaye Erkan resigned last night (February 2) by requesting to be relieved of her duties. Fatih Karahan has been appointed as the new Central Bank Governor to replace Erkan.
While the Central Bank and its governors have been a subject of debate during the 22-year AKP rule, a striking detail has emerged.
In 2017, Türkiye transitioned to the partisan presidential system, which the government calls the 'Presidential Government System.' With this system, a downward trend in the economy began, and frequent changes occurred in economic management.
Changes made in the Ministry of Treasury and Finance were also reflected in the Central Bank. The government's misguided policies and changes in economic management negatively affected the course of events.
Especially since 2018, the tenure of Central Bank governors has steadily declined. The average tenure of the last 4 governors has been 9.5 months.
Former TCMB chief economist Hakan Kara shared a chart he prepared regarding the tenure of TCMB governors on his social media account.
In his post on his X (Twitter) account, Kara stated: "The trend of the tenures of Central Bank governors is a summary of our country's institutional development history." he noted.
It is difficult to read, but for those who are curious, I am adding the raw data below. The length of each bar corresponds to the tenure of a Governor.
— Hakan Kara (@ali_hakan_kara) February 3, 2024
There has never been such frequent turnover in history as in the recent period. pic.twitter.com/3yErBsbVWp