Turkey Appoints Fatih Karahan as Central Bank Governor, Succeeding Hafize Gaye Erkan

Fatih Karahan was appointed Governor of the Central Bank of the Republic of Turkey with effect from 3 February 2024, after Hafize Gaye Erkan resigned from the position having served for less than a year.

Karahan, born in 1982, holds a doctorate in economics from the University of Pennsylvania and had served as a deputy governor of the central bank since July 2023. Before that he worked as an economist at Amazon and, for a decade, at the Federal Reserve Bank of New York.

ERKAN'S TENURE

Hafize Gaye Erkan had been appointed in June 2023, after national elections. Her tenure coincided with the launch of a tightening cycle.

Her resignation came days after the central bank raised its policy rate to 45% and signalled that the tightening cycle was complete. The Turkish authorities moved quickly to name Karahan as successor.

POLICY BACKDROP

Karahan assumes the governorship with the policy rate at 45% and annual inflation above the central bank's medium-term targets.