Following the massive fraud affair: Turkey's central bank governor resigns

Turkey's central bank governor, Şahap Kavcıoğlu, resigned today following a massive fraud affair. In his resignation letter, he cited serious allegations regarding banking regulation. The affair began in September with the withdrawal of $2.7 billion from funds of "Fusola Portfolio," leading to sharp declines on the stock exchange and the arrest of the stock exchange CEO and 99 other suspects.

Turkey's central bank governor, Şahap Kavcıoğlu, submitted his resignation letter today (Wednesday) to President Recep Tayyip Erdoğan, following a massive fraud affair that is shaking the Turkish capital market. In his letter, Kavcıoğlu stated that he wishes to end his tenure "in light of the recent serious allegations regarding banking regulation, supervision, and myself." The affair began in mid-September, when the fund management company "Fusola Portfolio" announced that some of its funds were unable to pay redemptions to investors. As a result, approximately $2.7 billion was withdrawn from the company's funds, and trading on the Istanbul stock exchange was suspended. The Turkish Capital Markets Board liquidated 131 investment funds, and the case was transferred to the Istanbul public prosecutor, who is investigating suspicions of stock manipulation and money laundering. The stock exchange CEO, Korkmaz Enes Ergun, was arrested along with 99 other suspects. The investigation is examining whether stock prices were artificially inflated through investment funds.