International Monetary Fund chief Christine Lagarde has called on the Turkish government to maintain its central bank independence, as confusion has led to the pound falling.
The mixed messages about whether the central bank is free of political interference have created a sense of uncertainty among investors, putting pressure on the Turkish currency, Lagarde said in an interview with Bloomberg Television in St. Petersburg.
"In terms of monetary policy, it is always best for all political leaders to let central bank governors do the job they need to do and to maintain and secure their independence," Lagarde said. "Some statements sounded the alarm to the international community and especially to investors that suddenly the Turkish central bank could be under directions, instructions or influence. "This created a sense of uncertainty and a lack of confidence, which was reflected in the market."