Turkey’s Surprise Central Banker Switch Has Investors Optimistic

Investors who bought into Turkey’s transformation story are unusually optimistic after the shock departure of central bank Governor Hafize Gaye Erkan, expecting her successor to intensify an orthodox push in the nearly $1 trillion emerging market.

In the past, surprise late-night changes at Turkey’s central bank have fueled periods of financial stress. This time appears different, investors said, thanks largely to the new governor’s credentials — including work as an economist at the New York Federal Reserve, his reputation since he joined the revamped Monetary Policy Committee last year, and the blessing of market-friendly Finance Minister Mehmet Simsek.