What are the foreign exchange rate policies and regulations of Turkey?
After the establishment of the foreign exchange market in August 1988, the exchange rate of the Turkish Lira started to be determined by the market forces. Since November 1995, the exchange rate policy of the Central Bank had been to devalue the Turkish Lira in line with WPI inflation against a currency basket consisting of US $ 1.00 and DM 1.5 over the long run. In line with the launch of the euro, the Central Bank replaced the Deutsche mark in the basket with euro. The basket now comprises US $ 1.00 and 0.77. The foreign exchange rate system proposed by the economic program in 2000 was crawling peg system. But it also envisaged an exit strategy from that system. Financial and macro economic developments led us to float the Turkish Lira and our new economic policy framework for 2001 is based on floating exchange rate system. Pursuant to Decree Law No. 32 issued in august 1989 and amended in June 1991, the Government eased restrictions on the convertibility of the Turkish Lira by facil
