Is Erdem Basci on his way out?

TURKEY - In Brief 15 Apr 2014 by Atilla Yesilada

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I’m extremely reluctant to comment on rumors in the Turkish media, but the frequency of articles suggesting that a major anti-Gulen operation in Capital Markets Board (CMB, Turkey’s SEC), BRSA and CBT has begun and may cause governor Basci his post are too grave to ignore. Besides, Reuters added credence to the rumors by commenting in English. I don’t think Basci’s position is in jeopardy, but he may be shanghaied to cut rates prematurely. Regarding CMB and BRSA, a major purge could mean that these august institutions may become blunt tools in the hand of AKP government to punish companies for majority shareholders’ “misbehavior”. Actually, I intended to celebrate my return from London with a summary of trip notes, but events moved too fast to get stuck in the past. In any case the most frequent comment I heard in my meetings is that premature rate cut “would devastate the currency”. In the link, is a Turkish language article by Mr. Okan Muderrisoglu, a well-respected pro-AKP Ankara insider writing for daily SABAH. Towards the bottom of the article, he confirms that most mid- and high-level bureaucrats in CBT, CMB and BRSA will be sacked. For those interested I have copies of similar articles that have appeared in dailies VATAN, Dunya Gazetesi, Milliyet and WSJ-Turkey on a similar vein. CMB has already been politicized, as it was forced to overzealously pursue claims of manipulation by foreign banks during Gezi protests, an inquiry which despite conventions has not been concluded 9 months after the events. Moreover Gulen-leaked tapes suggest that the agency has been instrumental in pursuing the witch-hunt against Dogan Media Holding, one of Mr. Erdogan’s most-hated Tur...