Turkey Financial Authorities Indict 26 Individuals Criticizing Government Monetary Policy

President Recep Tayyip Erdogan of Turkey [Photo by AFP Yonhap News]

[Asia Economy Reporter Park Byung-hee] The Banking Regulation and Supervision Agency (BRSA) of Turkey has indicted 26 individuals who criticized the government's monetary policy through media and social networking services (SNS), major foreign media reported on the 27th (local time).

The indicted individuals include former central bank governors, journalists, and economists. Among those indicted is Durmu? Yılmaz, an opposition party member who served as the central bank governor from 2006 to 2011. Also included in the indictment list is Ru?tu Saraco?lu, who served as the governor of the Central Bank of Turkey from 1987 to 1993.

On the same day, the BRSA announced on Twitter that it had taken legal action against the 26 individuals. The BRSA stated that these 26 people participated in exchange rate manipulation by criticizing the government's monetary policy during the sharp depreciation of the Turkish lira. It explained that they were indicted based on regulations prohibiting posts that damage the reputation of the central bank.

Foreign media reported that the Turkish government has suppressed criticism by taking legal action against those who criticize the government through SNS and other means during past periods of high exchange rate volatility.

This year, as inflation surged worldwide, central banks in various countries have raised benchmark interest rates to curb inflation. However, the Central Bank of Turkey has pursued the opposite policy by lowering the benchmark interest rate for four consecutive months. This is due to the directive of President Recep Tayyip Erdo?an, who demands a rate cut, claiming that high interest rates are the cause of inflation.

Due to the irrational monetary policy management by the central bank, the value of the Turkish lira plummeted this year. The lira traded at around 7 lira per dollar at the beginning of the year but fell to 18.4 lira per dollar on the 20th. After President Erdo?an announced measures to protect lira deposits, the lira's value rebounded sharply, recovering to about 11.5 lira per dollar by last weekend.

This content was produced with the assistance of AI translation services.