Essays on Central Bank of Turkey Case Study

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The paper "Central Bank of Turkey" is a great example of a case study on macro and microeconomics. During the control of the Ottoman, funds, dealers of jewelry, moneylenders, organizations, and associations carry out the assets actions, currency matters, and gold trade and foreign currencies through different levels. In 1847, Galata Bankers was allowed by the Government to establish the "Bank of Dersaadet" as a bank for the first time that assumed the external payments of the Ottoman Empire. In 1856 the "Ottoman Bank" was established jointly with the French and English capital and in 1863 it became the state bank under the name of "Imperial Ottoman Bank".

Imperial Ottoman Bank was enjoying the right and monopoly of issuing banknotes. This Bank was now able to collect the State revenues, the payments of the Treasury, and discount Treasury bills too. The interest and principal payments regarding domestic and foreign debts would be made by Ottoman Bank. The total capital of the Bank consisted of 135.000 shares. The 80.000 of capital was bought by the English Group, and 50.000 by the French Group, while Ottomans had 5.000 shares.

(Zü rcher, 2004) The period of benefit of the Ottoman Bank was extended by the Republican administration until 1935. But since 1926, the preparations were done to set up a central bank. The Bank was first established on October 3, 1931, and then the central bank was officially opened on January 1, 1932. (Zü rcher, 2004) From the Turkey legislatures and laws, the essential purpose of the central bank was to hold the financial growth of Turkey. The Bank had to fulfill the following duties for completing this aim: Setting rediscount ratios and regulating money markets Executing financial operations Taking joint steps along with the Government in order to save the rate of Turkish currency.

(Zü rcher, 2004) With the opening of financial progress plans in Turkey in the ’ 60s, many amendments were prepared in the Laws of the Central Bank. On 26th January 1970, laws were remade in order to state the tasks and errands of the Central Bank of Turkey so that implementation of the currency policy within the structure of progress plans could be done. In mid of the 1980s, the Bank launched the interbank money market, foreign exchange money market and made open markets operational.

(Zü rcher, 2004)

References

1. Jan Zürcher, Erik. Turkey: A Modern History. I.B.Tauris, 2004

2. Özbudun, Ergun, and Aydin Ulusan. The Political Economy of Income Distribution in Turkey. Holmes & Meier Publishers, 1980.

3. Carl Barth, Richard, Hemphill, William, and Irina Aganina, Financial Programming and Policy: The Case of Turkey. International Monetary Fund, 2000.

4. OECD. OECD Economic Surveys: Turkey - Volume 2006 Issue 15.OECD Publishing, 2006

5. M. Hoekman, Bernard, and Sübidey Togan. Turkey: Economic Reform and Accession to the European Union. World Bank Publications, 2005.

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