Turkish markets rattled after surprise firing of central bank head

Turkey’s lira and main stock index slid about 9% Monday as markets reacted to the surprise removal of the nation’s central bank chief amid broader political turmoil.
Traders work at their desks on the floor of the Borsa Istanbul in Istanbul on May 22, 2018. - Turkey's embattled currency, the lira, has hit new historic lows against the US dollar after Fitch ratings agency expressed concerns over the central bank's independence in the wake of comments by President Recep Tayyip Erdogan. (Photo by OZAN KOSE / AFP)
Traders work at their desks on the floor of the Borsa Istanbul in Istanbul on May 22, 2018. - OZAN KOSE/AFP via Getty Images
diego_cupolo_color.jpg
Diego Cupolo
@diegocupolo

ISTANBUL — Turkish markets plummeted Monday after the surprise weekend dismissal of a central bank chief sparked concerns that a recent set of hawkish monetary policies favored by investors would be reversed.

Turkey’s lira temporarily fell about 15% against the US dollar in early trading Monday before recovering to 10%, trading near 8 liras per greenback through most of the day. The Borsa Istanbul’s main stock index also saw its steepest drop since 2013, losing more than 9% and triggering several trading halts amid financial turmoil.

Access the Middle East news and analysis you can trust

Join our community of Middle East readers to experience all of Al-Monitor, including 24/7 news, analyses, memos, reports and newsletters.

Subscribe

Only $100 per year.

Videos

See more