Turkish authorities on Wednesday firmly denied rumors on various platforms claiming that Treasury and Finance Minister Mehmet Şimşek intended to resign from his post.
The rumors gained traction after several platforms claimed Şimşek had resigned nearly two weeks ago and that Vice President Cevdet Yılmaz convinced him to reverse his decision.
“The allegations that Finance Minister Mehmet Şimşek decided to resign and was persuaded to remain in office are not true,” the Presidency’s Directorate of Communication’s Center for Combating Disinformation said in a statement on Wednesday.
It emphasized that the rumors were “deliberately” spread to “create uncertainty and mistrust in the markets.”
“Please do not pay attention to disinformative news that is being circulated to cause unease and insecurity in the markets,” it added.
Şimşek took the helm after last year’s presidential and parliamentary elections and, along with Yılmaz, has spearheaded a major U-turn toward a more orthodox economic policy, mainly to combat soaring inflation.
Since June last year, the country’s central bank has raised its policy rate by 4,150 basis points, reversing years of monetary stimulus to boost economic growth.
The bank last raised rates in March by 500 basis points to 50%, capping an aggressive tightening cycle to rein in soaring prices. It has since held steady while vowing to hike more if the outlook worsens.
Annual inflation began dipping in June and touched 61.78% last month in what is expected to be a gradual, lasting decline.
To bolster the central bank’s aggressive interest rate hikes, Yılmaz and Şimşek have unveiled a savings and productivity plan focused on ensuring more efficient public finances and a major tax overhaul, including a minimum corporate tax.
