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Hafize Gaye Erkan, the governor of the Turkish Central Bank (TCMB), is involved in a scandal involving her family’s alleged undue influence over the bank’s operations.
The matter came to light following several Turkish media reports and a complaint from a dismissed bank employee to the Presidential Communications Center (CİMER).
Erkan, who assumed her role in June after a two-decade stint in the United States, including time at Goldman Sachs and First Republic Bank, recently revealed in an interview with the Hürriyet newspaper that she had to move in with her parents due to İstanbul’s soaring housing costs.
She commented on the city’s high cost of living, asking if İstanbul had become more expensive than Manhattan.
This statement was part of a broader discussion on Turkey’s economic challenges, including a year-on-year inflation rate of nearly 65 percent in December and a weakened lira currency under President Recep Tayyip Erdoğan’s administration. In response to the economic crisis, the central bank raised benchmark lending rates to 42.5 percent last month.
However, the focus soon shifted from Erkan’s personal living situation to her family’s involvement in the bank’s affairs.
Reports emerged a few days after the interview last month that her father, Erol Erkan, played an important role in arranging her interview with the Hürriyet newspaper, allegedly to raise her political profile.
Following those reports, a story in the Sözcü daily on Thursday alleged that Erol Erkan was frequently present at TCMB headquarters, seemingly exerting influence on various administrative decisions. Allegations include his involvement in personnel matters at the bank and his access to resources such as an office, security and an official vehicle.
A formal complaint was lodged by Büşra Bozkurt, a former bank employee, who claimed that she was fired due to Erol Erkan’s direct intervention. Bozkurt’s complaint detailed an encounter with the father, who expressed a desire to control access to the governor’s office and subsequently instructed the human resources department to assign her to his service. Following her resistance, Bozkurt alleged she was threatened and was eventually fired on Erol Erkan’s orders.
Further accusations surfaced, suggesting that the TCMB’s social facility in Ankara and a holiday resort in İzmir, which were meant for the TCMB staff, were exclusively allocated for the Erkan family’s use. A bank official claimed that the Ankara facility was closed under the pretext of renovations, with its staff, including chefs and waiters, reassigned to serve the Erkan family. The İzmir resort, previously closed to TCMB staff due to an earthquake in 2020, was also alleged to be in private use by the family.
Moreover, both Erol Erkan and Hafize Gaye Erkan’s mother, Gamze Erkan, are said to have been regularly present at the bank, issuing instructions to staff without any official capacity. This involvement reportedly extends to overseeing the care of governor Erkan’s child on the bank’s premises, with the governor’s office being used for this purpose.
These allegations have not only sparked internal dissent within the bank but have also attracted political attention. İYİ (Good) Party lawmaker Turhan Çömez submitted a parliamentary question regarding these claims, seeking clarification from Minister of Treasury and Finance Mehmet Şimşek. Çömez asks Şimşek about the alleged influence of Erkan’s parents and the potential damage to the bank’s reputation and credibility.
President Erdoğan has reportedly refrained from commenting on the issue.
In response to the allegations against her and her family, Hafize Gaye Erkan expressed shock and dismay via X at what she said were unfounded and malicious reports aimed at undermining the credibility of the TCMB and announced that she would assert her legal rights against those responsible.
Journalist Erdal Sağlam, in an article for 10 Haber news website, reported growing unrest within the TCMB regarding the continued tenure of Erkan, particularly due to alleged excessive interference by her father in institutional affairs, hinting at a possible early departure despite the upcoming local elections in March. Citing sources and observations, Sağlam explained that the situation has caused considerable unease at the highest level in Ankara and is having a negative impact not only on Erkan’s position but also on the bank and its operational policies.