Fitch downgrades Turkey after dismissal of central bank chief

YEREVAN, JULY 13, ARMENPRESS. Ratings agency Fitch downgraded Turkey’s sovereign rating to “BB-“ on Friday, saying the dismissal of its central bank governor heightens doubts over the authorities’ tolerance for a period of sustained below-trend growth, Reuters reported.

Governor Murat Cetinkaya was sacked on July 6 and President Tayyip Erdogan said he had dismissed him because Cetinkaya failed to follow instructions on interest rates and the bank had not properly fulfilled its role.

Fitch, which lowered Turkey’s rating from “BB” with a negative outlook, said Cetinkaya’s removal also highlights a deterioration in institutional independence and economic policy coherence and credibility.