DOI: https://doi.org/10.36719/2706-6185/52/145-150
Murad Mammadov
Azerbaijan State University of Economics
https://orcid.org/0009-0009-4112-6041
muradmammadov.aga@gmail.com
The Role of the Dollar in the Turkish Economy
Abstract
Turkey’s economy has faced challenges due to political instability, geopolitical tensions, and the volatility of the Turkish lira. The crises of the late 1990s and early 2000s, as well as the financial crises of 2008 and 2018, caused sharp devaluations in the lira, weakened investor confidence, and led to capital outflows. The Central Bank of the Republic of Turkey’s (CBRT) unconventional monetary policies have increased inflation and currency volatility. Foreign debts denominated in dollars have created a “dollar trap” and raised the costs of debt repayment. For long-term financial stability, Turkey needs to reduce its dependence on foreign debt, stabilize the lira, and implement structural economic reforms.
Keywords: economy, finance, inflation, monetary policy, foreign exchange reserves