Türkiye'de Döviz Piyasası Müdahalelerinin Sterilizasyon Maliyeti (The Cost of Sterilization of Foreign Exchange Market Interventions in Turkey)

• Main Author: Nilgün ACAR BALAYLAR
• Format: Article
• Language: English
• Published: Dokuz Eylul University 2011-07-01
• Series: Dokuz Eylül Üniversitesi Sosyal Bilimler Enstitüsü Dergisi
• Subjects: Foreign Exchange Market Intervention; Accumulation of Foreign Reserve; Sterilization.
• Online Access: http://www.sbe.deu.edu.tr/dergi/cilt13.say%C4%B13/07%20BALAYLAR.pdf

Significant increases in foreign exchange reserves in developing countries and Turkey have been observed in the 2000s. The proposal to build up reserves as a precaution against the financial crises since the second half of the 1990s has also brought interventions to the foreign exchange markets. However, the fact that intervention to the foreign exchange market created contrasting effects with regard to inflation targeting applications of central banks made the sterilization policy is inevitable. Therefore, the cost of sterilization is also added to the cost of possession of high foreign exchange reserves. In this study, the level of sterilization of foreign exchange market interventions, and the cost of the sterilization policy have both been calculated.