US-based cleric Fethullah Gulen at his home in Saylorsburg, Pennsylvania, US, on July 29, 2016. Reuters

Fethullah Gulen, exiled Turkish cleric, dies at 83



Fethullah Gulen, an exiled Turkish cleric accused of orchestrating a failed coup in 2016, has died aged 83.

Mr Gulen died in hospital on Sunday and had been receiving medical treatment for some time, the Gulen movement said on social media on Monday.

The cleric was accused by Turkish President Recep Tayyip Erdogan of organising a failed coup that led to the deaths of at least 265 people, with about 2,200 injured. Mr Gulen, who had lived in self-imposed exile in the US since 1999, denied any involvement.

Turkey's Foreign Minister Hakan Fidan later confirmed the death of Mr Gulen, describing him as the leader of a "dark organisation".

"Our nation's determination in the fight against terrorism will continue, and this news of his death will never lead us to complacency," Mr Fidan told reporters in Ankara.

Mr Erdogan has for years accused Mr Gulen's supporters of establishing a "parallel state" by infiltrating state institutions including the police and judiciary. Turkey has since 2016 arrested more than 80,000 people suspected of having links to the Gulen movement, proscribed as a terrorist organisation by Ankara, and has dismissed about 150,000 military personnel and public servants over alleged ties to the cleric.

Justice Minister Yimaz Tunc said Mr Gulen's death would not affect Turkey's fight against the movement, which the government calls the "Fethullah Terrorist Organisation", or FETO.

"The legal procedures carried out against the members of FETO will not be affected by the death in question, and the trials carried out against the leaders and members of the organisation and international judicial mechanisms will be followed with the same determination," he wrote on X.

Turkey had long sought Mr Gulen's extradition from the US. In 2021, his nephew, Selahaddin, was kidnapped from Kenya and brought back to Turkey by intelligence agents, his family said.

Turkish state news agency Anadolu, quoting security sources, said he was brought back to Turkey by agents from the National Intelligence Organisation (MIT).

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Will the pound fall to parity with the dollar?

The idea of pound parity now seems less far-fetched as the risk grows that Britain may split away from the European Union without a deal.

Rupert Harrison, a fund manager at BlackRock, sees the risk of it falling to trade level with the dollar on a no-deal Brexit. The view echoes Morgan Stanley’s recent forecast that the currency can plunge toward $1 (Dh3.67) on such an outcome. That isn’t the majority view yet – a Bloomberg survey this month estimated the pound will slide to $1.10 should the UK exit the bloc without an agreement.

New Prime Minister Boris Johnson has repeatedly said that Britain will leave the EU on the October 31 deadline with or without an agreement, fuelling concern the nation is headed for a disorderly departure and fanning pessimism toward the pound. Sterling has fallen more than 7 per cent in the past three months, the worst performance among major developed-market currencies.

“The pound is at a much lower level now but I still think a no-deal exit would lead to significant volatility and we could be testing parity on a really bad outcome,” said Mr Harrison, who manages more than $10 billion in assets at BlackRock. “We will see this game of chicken continue through August and that’s likely negative for sterling,” he said about the deadlocked Brexit talks.

The pound fell 0.8 per cent to $1.2033 on Friday, its weakest closing level since the 1980s, after a report on the second quarter showed the UK economy shrank for the first time in six years. The data means it is likely the Bank of England will cut interest rates, according to Mizuho Bank.

The BOE said in November that the currency could fall even below $1 in an analysis on possible worst-case Brexit scenarios. Options-based calculations showed around a 6.4 per cent chance of pound-dollar parity in the next one year, markedly higher than 0.2 per cent in early March when prospects of a no-deal outcome were seemingly off the table.

Bloomberg

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Updated: October 21, 2024, 10:56 AM