ISTANBUL: The Turkish lira and bonds were slightly stronger on Friday after the president approved Erdem Basci as the new central bank governor, in a move which is seen bringing continuity in monetary policy.
The lira was firmer at 1.5180 against the dollar in early trade, after closing at 1.5230 before the announcement. The currency, which stood at 1.5160 in overnight trade, hit its strongest level in four months last week at 1.5020.
The new Feb 20, 2013 benchmark bond stood at 8.73/8.68 percent in early over-the-counter trade after rising to 8.72 percent on Thursday from 8.68 percent a day earlier.
The appointment of Basci as governor came as little surprise and few analysts expect a change in monetary policy.
"We believe that market players will welcome Central Bank Deputy Governor Basci's appointment, since it will mean that there will not be a major policy deviation and volatility in the bank," said BGC Partners economist Ozgur Altug.
The Istanbul share index closed 0.36 percent weaker at 67,959 points on Thursday, underperforming the MSCI emerging equities index.
Basci, a 44-year-old deputy governor at the bank, is considered the architect of an unorthodox policy introduced last December combining lower interest rates, despite strong growth, with higher required reserves for banks, to slow rampant loan expansion and ensure overall tightening.
He will replace Durmus Yilmaz whose term as governor expires on April 18.
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