The Turkish Lira tumbled as much as 15% after President Recep Tayyip Erdogan sacked Naci Agbal, the country's central bank governor this past Saturday. 

Erdogan replaced him with Sahap Kavcıoglu in a surprise move. This is the 3rd central bank governor exit in less than 2 years.

The former central bank governor played a major role behing pulling the lira back from historic lows.

Mr Ncai Agbal, appointed in November 2020, had been raising interest rates to prevent an inflation rate running above 15%.

The dismissal of Mr Abgal has shocked both local and foreign investors who had previously praised Turkey's central bank's recent monetary policy.

Investors have been calling for stricter monetary policy to tame the high inflation rate, as prices keep on rising rapidly in Turkey.

The appointment of Sahap Kavcioglu, a former banker and ruling party lawmaker, sparked massive concerns from investors of a reversal of recent rate hikes.

The fallout from the sacking hit shares on the Istanbul stock exchange.

It also raised red flags about the impact of the country's borrowing costs.

Trading on the exchange was suspended for a short period after a fall in share prices triggered automatic circuit breakers.