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Turkey’s Central Bank Must Be Totally Independent, Says IMF’s Director For Europe

The IMF’s Europe department Director, Poul Thomsen has said that the most important requirement of the Turkish nation now is the need of a fully independent central bank. He spoke to CNBC during the IMF Spring meetings held in Washington and said that only by making the central bank independent can their policies be assessed and strengthened according to the circumstances.
The political and economic developments in Turkey had been disturbing the investors for almost a year. Poul Thomsen said that the rise in interest rates over the last six seven months is a welcoming move however the central bank of Turkey must be able to become more independent in its monetary policy assessment along with the fiscal policy challenges and its transparency. The Turkish economy was already facing a recession and by the end of 2018 Lira had lost 36 of its value against dollar.
However in spite of the inflation on the rise, Recep Tayyip Erdogan, the Turkish President has believed to keep the interest rates low presently more than 19%. There are rising fears among the investors that he will continue to follow the populist monetary policy after their defeat in the local elections. Unemployment and inflation has been on the rise and the slower rate of economic growth may still result in a rise in unemployment further. The Turkish economy is expected to have a 2% contraction by 2019 as said by the Moody’s.
When Thomsen was asked to respond to the speculations of IMF program with Turkey he said that they have not had any discussion on such a program as of now and that they only had regular normal contact with each other. The drop in the value of currency Lira has been marked as the worst performance this week and the Turkish central bank’s efforts of cutting down on its reserves were not helping the condition either.

Shannon Riley
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SR. CONTENT WRITER at Global Market News Wire

Having an experience of 4 years, Shannon has earned the position of the senior content writer in our organization owing to her hard work and dedication. Shannon deals with writing news and articles relating to the recent trends and events in the world of Business. In her free time, Shannon likes to watch videos and documentary for the various business tycoons from all across the world. she also maintains a personal blog presenting informative information relating to different businesses.

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