Berument, HakanDincer, N. N.2016-02-082016-02-0820040003-6846http://hdl.handle.net/11693/24152This study examines the effects of real exchange rate risk on the economic performance for an emerging, small open economy: Turkey. When the ratios of the total foreign exchange liabilities of the Central Bank of the Republic of Turkey (CBRT) to: (1) total reserves; (2) the CBRT's reserves; and (3) the CBRT's total Turkish lira liabilities are taken proxy of exchange rate risk, the empirical evidence suggests that the increase in exchange rate risk causes a depreciation in the real exchange rate, an increase in prices and a decrease in output. © 2004 Taylor and Francis Ltd.EnglishCurrency marketExchange rateNational economyPerformance assessmentReal exchange rateRisk factorEastern HemisphereEurasiaTurkeyWorldArticle10.1080/00036840420002876371466-4283