A new door points to an old name... A Gaye Erkan surprise at the Palace? Concerns of a rift in economic management

While the political scene in Turkey is going through active days, notable developments are also taking place on the economic front. While Treasury and Finance Minister Mehmet Şimşek is giving consecutive messages to reassure the markets, the claim that former Central Bank Governor Hafize Gaye Erkan will return to state duty has dropped like a bombshell on the agenda.

Hafize Gaye Erkan, who became the focus of controversy in 2024 with her remark that "Istanbul is more expensive than Manhattan" and subsequently left her post, has this time become one of the most talked-about names in Ankara's political corridors.

DOES THE NEW DOOR POINT TO AN OLD NAME?

With the latest Presidential Decree published in the Official Gazette, the Digital Transformation Office, the Finance Office, the Human Resources Office, and the Investment Office were brought under a single roof. While there is curiosity about who will be appointed to head the institution, which was merged under the name "Investment and Finance Office" as a result of this new restructuring, the name of Hafize Gaye Erkan is coming to the fore in political circles.

Journalist Nuray Babacan, in her column in Nefes Gazetesi today, detailed these claims and brought what is being discussed in Ankara's corridors to the agenda.

According to Babacan, the starting point of these rumors is the close relationship Hafize Gaye Erkan has established with the new US Ambassador to Ankara, Tom Barrack.

The trust Tom Barrack has in Erkan and the ease of communication between them bring with it the thought that this appointment could be strategic in terms of both Turkey-US relations and the investment environment.

CONCERNS OVER A RIFT IN ECONOMIC MANAGEMENT

However, this development is being met with as much concern as it is with positivity in political circles. It is being discussed that the current economic management led by Mehmet Şimşek might be uncomfortable with Erkan being brought to a high-level position at the Presidential Palace.

It has been stated that this situation could create the risk of a "two-headed economic management" and cause confusion in the markets.