The Central Bank of the Republic of Turkey is primarily responsible for steering the monetary and exchange rate policies in Turkey.
Duties and Responsibilities of the Central Bank
The Bank’s duties and responsibilities set by the Central Bank Law address the following 5 areas:
1. Price Stability
The primary objective of the Central Bank is to achieve and maintain price stability. Price stability refers to an inflation rate low enough to be ignored in economic decisions. The Bank determines at its own discretion the monetary policy that it will implement and the instruments that it will use to achieve this objective. This means that the Bank has instrument independence.
2. Financial Stability
Financial stability is a complementary objective for the Central Bank. The Bank is responsible for taking the regulatory measures with respect to money and foreign exchange markets to ensure stability in the financial system in Turkey.
3. Exchange Rate Regime
Another duty of the Bank is to determine the exchange rate regime in Turkey jointly with the government, and to design and implement this regime.
4. The Privilege of Printing and Issuing Banknotes
5. Payment Systems
The Central Bank establishes transfer and settlement systems to ensure fast and secure transfer of money and securities. It is also responsible for introducing necessary regulations that will facilitate uninterrupted functioning and control of existing systems.