Thursday, November 2, 2023

Introducing Hafize Gaye Erkan: Turkey’s New Central Bank Chief

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Hafize Gaye Erkan has made history by becoming the first woman to lead the Central Bank of Turkey. Her appointment by President Recep Tayyip Erdogan comes at a critical time for the country’s economy, which has been hit hard by the COVID-19 pandemic and a currency crisis. Erkan’s impressive corporate career in the US, spanning financial services, banking, investment, risk management, technology, and digital innovation, has prepared her well for this challenging role.

Early Life and Education

Erkan was born in Istanbul in 1982 to an engineer father and a mother who taught mathematics and physics. She attended Istanbul High School, one of the top state schools in Turkey, where she excelled academically and graduated second in her class. She went on to study industrial engineering at Bogazici University, one of the most prestigious universities in Turkey.

Erkan’s academic achievements continued when she earned a doctorate in operations research and financial engineering from Princeton University in the United States in 2006. She later completed business programs at Harvard Business School and the Stanford Graduate School of Business in 2015 and 2016, respectively.

Corporate Career

Erkan joined Goldman Sachs as an associate in 2005 and quickly rose through the ranks to become managing director by 2011. Her expertise in risk management and investment banking earned her a reputation as a rising star in the industry. In 2014, she joined First Republic Bank, where she became co-chief executive officer in 2021.

Erkan’s achievements have not gone unnoticed, and she has been recognized by several prestigious organizations. In 2018, she was named to the 40 Under 40 lists by Crain New York Business and the San Francisco Business Times. She was the only woman under 40 holding a president or CEO title at one of the 100 largest US banks.

Erkan is also a champion for women’s education and empowerment. She supports the National Coalition of Girls’ Schools and recently founded the Hafize Gaye Erkan First Republic Fellowship Program for young women and girls.

Appointment as Governor of the Central Bank of Turkey

Erkan’s appointment as governor of the Central Bank of Turkey is significant, not only because she is the first woman to hold the position but also because of the challenges facing the country’s economy. Turkey’s currency, the lira, has been in freefall, losing more than half its value against the US dollar since 2018. The COVID-19 pandemic has further weakened the economy, with unemployment rates rising and inflation soaring.

Erkan’s experience in risk management and investment banking will be invaluable in her new role. She will need to navigate the complex economic landscape and make tough decisions to stabilize the currency and boost the economy. Her appointment is a sign that Erdogan is willing to bring in outside expertise to address the country’s economic challenges.

Erkan’s appointment comes at a time when Erdogan is signaling a shift towards more orthodox economic policies. Last week, he named Mehmet Simsek, an advocate of orthodox economy policies, as Turkey’s treasury and finance minister. This move suggests that Erdogan is retreating from his unorthodox economic policies, including his belief that raising interest rates increases inflation.

Conclusion

Hafize Gaye Erkan’s appointment as governor of the Central Bank of Turkey is a significant milestone for women in Turkey and a sign that Erdogan is willing to bring in outside expertise to address the country’s economic challenges. Erkan’s impressive corporate career in the US, her academic achievements, and her commitment to women’s education and empowerment make her well-suited for this challenging role. As she takes on this critical position, all eyes will be on her as she works to stabilize the currency and boost the country’s economy.

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