Convertibility : theory and evaluation of Turkish Lira convertibility

Abstract

The purpose of this thesis is to evaluate the convertibility of Ttirkish Lira in the light of economic policies in Turkey since 1980 and the recent regulations which are announced by the government in August,1989 known as 'Decree no; 32 ’. For this purpose in the first part of the thesis a theoretical framework is established where the definition, the types, and the prerequisite conditions for convertibility are presented. In the following part of the thesis the convertibility of Turkish Lira is investigated in the light of the prerequisite conditions and it is found out that none of these conditions were present in Turkey, therefore, it is concluded that Turkish Lira is far away from convertibility since shifting to convertibility before fulfilling these conditions will not provide a successful and sustainable progress for Turkish economy.