The Uncertainty of Exchange Rate in Foreign Trade of Turkey Cover Image

Türkiye diş ticaretinde döviz kuru belirsizliği
The Uncertainty of Exchange Rate in Foreign Trade of Turkey

Author(s): Yağmur Akarsu, Nur Dilbaz Alacahan
Subject(s): Government/Political systems, International relations/trade, Economic development, Financial Markets, Globalization
Published by: Rating Academy
Keywords: Exchange rate risk; Import; Export; Turkey;

Summary/Abstract: Exchange rate is a key determinant of intercountry economic relations. After the breakdown of Bretton Woods system and development of financial markets with globalisation, determination of exchange rates by markets complicated prospective exchange rate estimation. An undetermined exchange rate causes companies and individuals to feel uneasy making economic decisions. Uncertainty exchange rate poses a risk for all countries importing and exporting. To avoid damage to companies and countries against exchange uncertainty, the government needs to take measures to protect exchange rate stability. The exchange rate uncertainty affects the country’s import and export volume and therefore the country’s economy. In the studies, the results that the exchange rate 332 uncertainty affects foreign trade negatively are reached. The purpose of this study is to determine the effects of the exchange rate uncertainty on the Turkish economy and explain the measures that governments, companies and individuals should take against the exchange rate uncertainty.

  • Issue Year: 2/2017
  • Issue No: Special
  • Page Range: 331-348
  • Page Count: 18
  • Language: Turkish