Turkish central bank needs to be fully independent: IMF Europe chief

People change money at a currency exchange shop on August 14, 2018 in Istanbul, Turkey. 

Chris McGrath | Getty Images

People change money at a currency exchange shop on August 14, 2018 in Istanbul, Turkey. 

Economic along with political developments in Turkey have had investors worried for more than a year currently.

One of the country’s most immediate needs if This particular wants to get its house in order is usually to ensure total independence of its central bank, according to the man who led the bailouts of Greece, Portugal, Iceland along with Ukraine during the Great Recession.

“Turkey faces many challenges, along with one of them is usually which the central bank needs to be fully independent so This particular can continuously assess along with tighten policies as circumstances change in a forward-looking manner,” Poul Thomsen, director of the International Monetary Fund’s Europe department, told CNBC’s Joumanna Bercetche during the IMF Spring Meetings in Washington, D.C. over the weekend.

“So we welcome the increase we’ve seen in interest rates inside last six to seven months, although This particular’s important which the Turkish central bank be allowed to be fully independent in its assessment of monetary policy in addition to many additional challenges on fiscal policy, along with more transparency.”

Turkey’s economy is usually already in recession, rocked last year after fears over government interference into central bank independence, over-leveraged banks, a large current account deficit along using a diplomatic spat with the U.S. triggered investor along with capital flight. The lira lost 36 percent of its value against the dollar by the end of 2018.