Türkiye Cumhuriyeti Merkez Bankası

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Türkiye Cumhuriyet Merkez Bankası is the Central Bank of the Republic of Turkey.

1 History
- 1.1 The Ottoman Period
- 1.2 The Republican Period
2 See also
3 External link

[edit] History

[edit] The Ottoman Period

In the Ottoman Empire, the Treasury operations, money and credit transactions and the trade in gold and foreign currencies were executed in varying degrees by the Treasury, the Mint, jewelers, money lenders, foundations and guilds.

In 1847 the Ottoman Government allowed Galata Bankers to set up the Bank of Dersaadet as a bank which assumed the external payments of the Ottoman Empire for the first time.

In 1856 the Ottoman Bank was established jointly with French and English capital and in 1863 partly assumed the functions of contemporary central banking after becoming a state bank under the name of Imperial Ottoman Bank.

The Imperial Ottoman Bank enjoyed the right and monopoly of issuing banknotes. The Government relinquished the right to issue banknote within the period of privilege and to grant permission to other institutions in this regard as well. Equipped with this power, the Bank would act as the Treasurer of the State, collect the State revenues, perform the payments of the Treasury and discount Treasury bills as well. The interest and principal payments regarding domestic and foreign debts would be made by the Ottoman Bank only. The capital of the Bank consisted of 135.000 shares. The 80.000 of which were bought by English Group, and 50.000 of which by French Group, whereas 5.000 shares were allocated to Ottomans.

[edit] The Republican Period

Even though the Republican administration extended the period of privilege of the Ottoman Bank until 1935, the preparations had been undertaken to set up a central bank since 1926. The Law on the Central Bank of the Republic of Turkey No: 1715 was enacted on June 11, 1930. The Bank was established on October 3, 1931 and opened officially on January 1, 1932. The Bank had, originally, a privilege of issuing banknotes for a period of 30 years. In 1955 this privilege was extended until 1999. Finally it was prolonged indefinitely in 1994.

According to the Law No: 1715, the basic aim of the Bank was to support economic development of the Country. In order to fulfill this aim, the Bank was given the following duties:

To set rediscount ratios and to regulate money markets, To execute Treasury operations, To take, jointly with the Government, all measures to protect the value of Turkish currency. With the introduction of economic development plans in Turkey in the Sixties, several changes were made in the Central Bank Law No: 1715. For the same purpose, the Law No: 1211, which was enacted on January 26, 1970, redefined the duties and responsibilities of the Central Bank of the Republic of Turkey so as to implement the money and credit policy within the framework of development plans.

In the second half of the Eighties, the Bank inaugurated interbank money market, foreign exchange money market and started to make use of open market operations.