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Fatih Karahan, governor of the Central Bank of the Republic of Türkiye (CBRT), has been named co-chair of the Financial Stability Board (FSB) Regional Consultative Group for the Middle East and North Africa (RCG MENA), an international advisory body representing the world’s major economies.
The appointment, announced by the FSB on Thursday via the social media platform X, will see Karahan serve a two-year term beginning July 1. He will co-chair the group alongside Hassan Abdalla, governor of the Central Bank of Egypt.
In a post on X, Karahan expressed his appreciation for the appointment, stating, “Honored to be serving as Co-Chair. Looking forward to working with colleagues across the region to strengthen financial stability and deepen cooperation.”
The FSB, established in 2009, functions as an international body that monitors and makes recommendations about the global financial system. It operates under the auspices of the G20—a forum of the world's largest economies—and the Bank for International Settlements, a Switzerland-based institution owned by central banks around the world.
Regional Consultative Groups, such as RCG MENA, are designed to link FSB’s global policy efforts with regional priorities, providing a platform for discussion among central banks and financial authorities from specific regions. By assuming a leadership position within this framework, Türkiye now takes on a greater role in shaping regulatory discussions and enhancing financial stability in the region.
Karahan, 43, has served as Türkiye’s central bank governor since February 2024. A graduate of Bogazici University in mathematics and industrial engineering, he also holds a Ph.D. in economics from the University of Pennsylvania.
During his term, the Turkish central bank raised interest rates to 50% by March 2024 and held the rate steady until December 2024. However, in December, the bank initiated a rate-cutting cycle, lowering the policy rate to 42.5% through three consecutive 250-basis-point cuts. This trend reversed in April due to persistent inflation, prompting the bank to implement a 350-basis-point hike. Meanwhile, Türkiye's inflation has been steadily declining since May 2024, falling from 75.45% to 35.05% by June 2025.
His appointment coincides with the announcement of Andrew Bailey, governor of the Bank of England, as the chair of the FSB at the international level.
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