As the country’s monetary authority, the Central Bank of the Republic of Turkey (CBRT) is responsible for implementing monetary and exchange rate policies and printing banknotes in Turkey.
The CBRT was established as a joint stock company on 11 June 1930. The primary objective of the Bank is to achieve price stability. The CBRT is also responsible for taking measures to sustain the stability of the financial system in Turkey. Particularly, the Bank strives to contain the macro financial risks stemming from global imbalances. Accordingly, maintaining financial stability is defined as the supporting objective of the Bank.
The privilege of printing banknotes in Turkey was initially vested with the Grand National Assembly of Turkey. The Assembly has transferred the privilege of printing and issuing banknotes exclusively and indefinitely to the CBRT.
One of the main responsibilities of the CBRT is to determine the exchange rate regime jointly with the government. The CBRT is responsible for and authorized to design and implement the exchange rate policy in line with the agreed exchange rate regime. Since 2001, the floating exchange rate regime has been implemented in Turkey.
The CBRT is in charge of managing the gold and FX reserves of Turkey. Reasons for holding international reserves are to establish and maintain confidence in monetary and exchange rate policies, provide FX liquidity for the Treasury’s domestic and foreign debt services, reduce the economy’s susceptibility to endogenous and exogenous shocks, boost the confidence of international markets in the Turkish economy.
The CBRT is also responsible for establishing and securing the uninterrupted functioning of payment, security transfer and settlement systems to enable safe and swift transfer of money and securities.