Markets are also waiting for the appointment of a new central bank governor to replace Sahap Kavcioglu, who spearheaded rate cuts under Erdogan's unorthodox policies.
"I think we are seeing the impact of Simsek pushing (the Turkish central bank) for rational policy."
Bankers say the lira's continued gradual depreciation will lead to improved market conditions and halt a decline in central bank reserves.
But it sparked a record lira crisis in December of 2021 and sent inflation to a 24-year high above 85% last year.
Erdogan is considering appointing Hafize Gaye Erkan, a senior finance executive in the United States, as central bank governor, Reuters reported on Monday.
Persons:
Tayyip Erdogan, Erdogan, Mehmet Simsek, Simsek, Sahap Kavcioglu, Tim Ash, Hafize Gaye Erkan, Erkan, Paul McNamara, Huseyin Hayatsever, Jonathan Spicer, Ali Kucukgocmen, Tom Hogue, Christina Fincher
Organizations:
BlueBay Asset Management, Bankers, Reuters, Simsek, GAM, Thomson
Locations:
ANKARA, Turkish, United States, Ankara, Turkey, Jorgelina, Rosario, London