Turkey's President Erdogan replace two central bank governors

ISTANBUL, Oct 14 Reuters - On Thursday, Turkey's President replaced Kucuk and Abdullah Yavas with three new members of the MPC central board.

Erdogan made Yusuf Tuna Deputy Central Bank Governor and Taha Cakmak an MPC member. Tumen and Kucuk had both been deputy governors.

The lira fell against the dollar to a record low of 9.1700 following the announcement. It has weakened some 19% so far this year.

On Wednesday evening the presidency announced that Erdogan had met Prime Minister Sahap Kavcioglu, with Erdogan next to him published a photo of Erdogan as he stood next to him.

Last month the central bank cut its key rate to 18% from 19% despite annual inflation of nearly 20%, in a move analysts viewed as fresh evidence of political interference by Erdogan, a self-described enemy of interest rates.

Bank governor's next policy meeting is on 21 Oct.

Three sources familiar with the matter said last week that Erdogan was losing trust in Kavcioglu, less than seven months after he sacked his predecessor, and that the two had communicated little in recent weeks.