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Central Bank of The Republic of Turkey

The Central Bank is the institution responsible for the management of monetary and exchange policies in our country. The Central Bank was established on June 11, 1930 as a joint stock company. Bank, Administration Center, Banknote printing House and Branches. The Banks Administration Center is in Ankara. The Central Bank carries out its activities based on the Law No. 1211. The policy of the Central Bank in 1995-1999 is aimed at stabilizing financial markets. Due to the inability to control inflation, a new stabilization program based on exchange rate was put into force in 2000. But the loss of confidence in the economy towards the end of 2000 and the crisis in 2001, causing the program to be terminated. As a natural consequence, it was observed that on 22 February 2001 the exchange rates were left to fluctuate. Important changes were made in the Central Bank Law after the structural transformation that took place in the economy after the crisis. These amendments made on April 25, 2001 are as follows: Providing price stability is clearly defined as the central aim of the Central Bank. In this framework, it was decided that the Central Bank would directly determine the applications and means to be used on the monetary policy side; thus the Bank has achieved vehicle independence. The government has decided that the government will support its growth and employment policies, provided that the bank does not contradict the purpose of maintaining price stability. Providing financial stability is defined as the Bank's supportive goal. It is forbidden for the Central Bank to give advances to the Treasury and other public institutions and institutions, to open credits and to borrow borrowing instruments issued by these institutions from the primary market; on which the Bank is prevented from becoming a source for public financing needs. In order to institutionalize the monetary policy strategies and decision-making mechanisms, the Monetary Policy Committee has been established.

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