Uluslararası Ekonomi, İşletme ve Politika Dergisi, vol.4, no.1, pp.101-106, 2020 (National Refreed University Journal)
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.