President Recep Tayyip Erdoğan said former economy chief Mehmet Şimşek would replace Nureddin Nebati as Türkiye's treasury and finance minister.

Şimşek was highly regarded by investors when he served as finance minister and deputy prime minister between 2009 and 2018.

Before the May 14 elections, there were reports surrounding Şimşek’s potential inclusion in the new Cabinet following the election.

Türkiye has been coping with high inflation that has undermined the purchasing power of its citizens, as well as a steep depreciation in the Turkish lira.

It is also trying to emerge from the effects of devastating earthquakes that ripped through the country’s southeastern region in early February.

The rationale behind the government’s economic policy is to stimulate domestic demand, boost investment and consequently drive economic growth through cheaper lending programs. In addition, it insists that the program, unveiled in 2021, can help flip the country’s chronic current account deficits to a surplus.

In line with this approach, the Turkish central bank has aggressively reduced interest rates to ease borrowing costs for businesses and individuals and encourage spending. The policy rate, known as the one-week repo rate, was cut from 19% in mid-2021 to 9% by early 2023.

The monetary authority last cut the benchmark policy rate by another 50 basis points to provide stimulus after the catastrophic Feb. 6 tremors killed more than 50,000 people and caused extensive destruction across 11 provinces.