ANKARA, Turkey (AP) — Turkey’s currency fell sharply on Monday, reawakening concerns of another bout of financial jitters in the country, after President Recep Tayyip Erdogan fired the central bank governor, reportedly over disagreements on interest rate cuts.

Murat Cetinkaya was replaced by Murat Uysal, the central bank’s deputy governor, in a presidential decree published Saturday. No reason was given for the dismissal but media reports said Cetinkaya had resisted pressure from Erdogan to lower borrowing costs.

The move, which raises concerns over the independence of the bank from the government, is expected to lead to rate cuts in the coming weeks. The central bank holds its next monetary policy on July 25.

“The dismissal of Turkey’s central bank governor over the weekend increases the chances of aggressive cuts in interest rates in the near-term,” wrote Jason Tuvey, senior emerging markets economist at Capital Economics. “But it has also raised the risk of larger currency falls and is likely to make the country’s inflation problem worse, pushing up long-term bond yields.”

Lower interest rates tend to weaken a currency but boost economic growth and inflation. Inflation has been a problem for Turkey in recent years, and independent economists have said the country should have higher rates, though Erdogan has been pushing for cuts.

The Turkish lira dropped by 3% in early trading on Monday before recovering some of its losses. It stood at 5.74 against the dollar, down some 2 % from Friday.

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