Erkan made the announcement on social media platform X, addressing accusations of nepotism, particularly involving her father Erol, in the decision-making processes of the bank.

The resignation follows a series of attacks by both former and current Central Bank staff against Erkan's management, including claims of allowing family involvement in professional decisions and authorizing extravagant spending from the bank's budget.

Turkish Economy Minister Mehmet Simsek described Erkan's decision as "personal" and did not specify a successor. Erkan, a mainstream economist appointed as the bank's chief in June after President Erdogan's reelection, implemented stricter monetary policies during her tenure, raising interest rates from 8.5% to 45%.

Erkan's resignation marks the fifth change in leadership at the Central Bank in the past four years, reflecting significant shifts in Türkiye's economic policies. The country's annual inflation, which reached a 24-year high of 85.5% in October 2022, has gradually decreased to around 60% under the new economic management.

At the time of the announcement, financial markets were closed, but there is speculation that the Turkish lira may experience a slight decline in response to the news.

Hafize Gaye Erkan is a prominent Turkish economist, banker, and engineer. Born in 1979 in Istanbul, she has made significant contributions to the field of finance and economics.

In June 2023, she made history by becoming the first woman appointed as the President of the Central Bank of the Republic of Türkiye. (ILKHA)