Global Finance magazine lowers Turkish Central Bank governor’s grade

Şebnem Turhan - ISTANBUL

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Global Finance magazine has lowered the rank of Turkish Central Bank Governor Erdem Başçı from B+ to C, ranking him as one of the worst performers this year. 

Başçı was not graded in his first year in the job in 2011, but took a B+ in 2012, B in 2013, and B- in 2014. 

The drop in Başçı’s grade has most probably been due to the rising trend in Turkey’s inflation rates and the huge loss in the Turkish Lira’s value, according to analysts. 

The soon-to-be-published October issue of Global Finance will publish the full Central Banker Report Cards for 2015.

Former Turkish Central Bank Governor Durmuş Yılmaz took an “A” in 2010 for his success in achieving inflation targets, up from “C” in 2008. 

The Central Banker Report Cards, published annually by Global Finance since 1994, grade the central bank governors of nearly 75 key countries (and the European Union) on an “A” to “F” scale for success in areas such as inflation control, economic growth goals, currency stability and interest rate management. “A” represents an excellent performance down through “F” for outright failure. Subjective criteria also apply, according to the magazine’s website. 

The magazine has named the heads of the central banks of the Czech Republic, the European Union, India, Israel, Malaysia, Paraguay, Peru, the Philippines, and Taiwan as the World’s Best Central Bankers over the past year, in recognition of their achievement of a prestigious “A” grade on Global Finance’s Central Banker Report Cards.

In addition, the central bankers of Colombia, Saudi Arabia and the United States earned “A-” grades.

“Global economies are starting to recover. This comes despite a number of challenges, including a strengthening U.S. dollar and the end of the Federal Reserve’s easy money policy. Central bankers remain crucial in overcoming these hurdles. Sound monetary policies can dampen the effects of currency swings and rising interest rates—and thus spur economic growth. As our scores show, some central banks have fared better than others in devising such policies. Our grades also reflect the willingness of central bankers to stand up to political interference as well as their ability to influence government policies on spending and foreign investment,” said Global Finance publisher and editorial director Joseph Giarraputo.