Turkey forges new economic policies but lira’s plunge continues

On Thursday, Turkey's central bank increased its key rate by 650 basis points to 15 percent, the first hike in the country since early 2021 [Emrah Gurel/AP]

Nearly a month after Turkish President Recep Tayyip Erdogan’s re-election, his government is forging a new course in economic policy.

Erdogan’s appointments of Mehmet Simsek to the post of leading the finance and treasury ministry, and of Hafize Gaye Erkan, a former Wall Street banker, as central bank chief, signalled his readiness to reverse course from his unorthodox policies.