Turkish President Tayyip Erdogan speaks at a press conference following his meeting with German Chancellor Angela Merkel (not pictured) at the Huber Mansion in Istanbul, Turkey on October 16, 2021. REUTERS / Murad Sezer / File Photo

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ISTANBUL, Dec. 2 (Reuters) – Turkish President Tayyip Erdogan on Thursday appointed Nureddin Nebati Minister of Treasury and Finance after Lutfi Elvan resigned, the last top official seen to adhere to the orthodox policies of a collapsing government monetary.

The appointment, announced in Turkey’s Official Gazette, follows the pound’s 27% drop in the last month alone. It has reached a series of lowest records for the direction of economic policy.

Nebati was deputy minister of treasury and finance and studied international relations, political science and public administration, according to his curriculum vitae posted on the ministry’s website.

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“My God, make it easy, don’t make it hard. My God, make its outcome beneficial. Give us the truth in our work, make us successful,” Nebati tweeted early Thursday.

“My God, grant me the capacity to exercise the function of Minister of the Treasury and Finance, which our president deemed worthy of me, and to be worthy of the confidence he has shown us”, has t -he declares.

Nebati, who was deputy finance minister for three years before his appointment, said last week that Turkey had been trying for years to implement a low interest rate policy but had faced strong opposition.

“This time around, we are determined to implement it,” he wrote on Twitter, adding that there was “no problem” in keeping interest rates low under current market conditions.

Elvan, a former Deputy Prime Minister and a long-time member of the ruling AK Party, held the finance post for just over a year after replacing Berat Albayrak, Erdogan’s son-in-law.

The lira, which had depreciated to 13.87 per dollar on Wednesday, closed the session at 13.40 after the meeting. It has lost more than 44% of its value against the greenback this year. It traded at 13.51 at 05:40 GMT.

The departure marks the latest in a rapid rotation in top economic posts, including Erdogan’s brutal sacking of three central bank governors in the past two and a half years, moves that appear to have shaken credibility policy development.

Economic analysts said mismanagement and political uncertainty have left double-digit inflation stuck and official foreign exchange reserves low, while the pound has lost two-thirds of its value in four years, by far the worst of emerging markets.

As the central bank took an accommodating stance in September, Elvan was seen as one of the last ministers who could convince Erdogan to reconsider what analysts see as the bank’s ragged credibility.

Uncertainty over the new economic model in which Erdogan approved further interest rate cuts despite surging inflation prompted the central bank to intervene on Wednesday to stabilize the volatile currency for the first time since 2014. read more following

1 YEAR ACCORDING TO ELVAN

Elvan was appointed in November last year amid a dramatic cabinet reshuffle in which his predecessor Albayrak, a divisive figure in the AK party, abruptly resigned on Instagram, stunning the president and his Tory government.

Elvan, along with newly appointed central bank governor Naci Agbal, were pro-market technocrats who turned to more orthodox economic policies that began to reverse an exodus of foreign investment that lasted for years and s ‘is accelerated under Albayrak.

But the mood changed in March when Erdogan abruptly sacked Agbal following an interest rate hike to 19%, paving the way for a subsequent 36% drop in the lira that went down. accelerated into a collapse last week.

The central bank, now headed by Sahap Kavcioglu, began to ease in September and cut rates on Thursday by an additional 100 points to 15%, a move that many analysts have called unwise given the deeply negative real returns in the economy. Turkey.

The resulting currency crash devastated Turkish incomes, sharply increased foreign debt obligations and prompted the opposition to call for snap elections to reset economic policy.

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Reporting by Ezgi Erkoyun, Daren Butler and Ece Toksabay; Editing by Grant McCool, Alistair Bell and Kim Coghill

Our Standards: Thomson Reuters Trust Principles.

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