EXCHANGE RATE RISK AND AN EVALUATION IN TERMS OF TURKEY ECONOMY

Together with the globalization, the importanceof exchange rate, which is one of the main determinants of economic relationships in the countries, increased. Especially after the collapse of Bretton Woods system, the markets became free and the countries got closer to each other. Since the instability in any of the trading countries will affect the other countries negatively, the uncertainty of exchange rates is very important. The companies aiming to determine the strategies to be used in exchange rate risk and to eliminate or minimize the exchange rate risk have to manage this situation in the best way. From the aspect of companies, measuring and accurately managing the exchange rate risk is very important for determining the weaknesses of companies and (generally) countries and eliminating them. The objective of this study is to assess the exchange rate risk for Turkey and to determine the measures to be taken against the exchange rate risk