Hafize Gaye Erkan, an economist educated at Princeton, was appointed last year to revive Turkey’s struggling economy. However, recent allegations of nepotism involving her father, Erol Erkan, have put her position as the central bank chief at risk. If she is removed from her role, she would be the sixth central bank chief to be fired in the last five years, posing a potential threat to investor confidence as the government works to stabilize the economy in the face of increasing inflation and a weakening currency.
The timing of Erkan’s potential dismissal is a subject of speculation, with observers debating whether it will occur before the March 31 municipal elections or afterward. The controversy surrounding Erkan’s father began when a central bank employee, Busra Bozkurt, claimed she was wrongfully terminated by Erol Erkan, who has no official position in the bank. Bozkurt alleged that she was fired after refusing to leave her position in the bank’s protocol department to become the personal assistant to Erkan’s daughter.
These ongoing claims have fueled concerns about the central bank’s independence and have raised doubts about its ability to operate impartially. This situation has created uncertainty in the financial markets, as investors await a decision regarding Erkan’s fate and its potential impact on the country’s economic stability.