Imposing Reserve Tax to Turkish Financial Institutions for Strengthening Reserves of the Central Bank of The Republic of Turkey

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Kartal M. T., Tan Ö. F.

Uluslararası Ekonomi, İşletme ve Politika Dergisi, cilt.4, sa.1, ss.101-106, 2020 (Hakemli Dergi)

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 4 Sayı: 1
  • Basım Tarihi: 2020
  • Dergi Adı: Uluslararası Ekonomi, İşletme ve Politika Dergisi
  • Derginin Tarandığı İndeksler: Index Copernicus
  • Sayfa Sayıları: ss.101-106
  • Marmara Üniversitesi Adresli: Evet

Özet

Although foreign exchange rates (FER) and inflation increased slowly between from 2002 and 2013, they increased rapidly after that time and they have reached the highest level in 2018 on annual base since 2006. Adverse developments in indicators like FER make negative effects on economic actors by causing uncertainty and uneasiness. They also cause adverse effects on a variety of macroeconomic indicators such as foreign debt burden and interest payments. For this reason, it is important for countries to determine the causes of increasing in FER and take measures to keep them under control. For this purpose, there are a lot of conventional tools like tight monetary policy, tight fiscal policy, implementation of harmonious policies and capital controls. In this context, reserves of CBRT are an important tool. However, it is necessary to have adequate reserves in order to use reserves to keep FER under control. Taking into consideration this fact, it is recommended to impose reserve tax liability to financial institutions so that reserves of CBRT could be increased.