Özet:

Reserve Option Mechanism, which the CBRT has started to use since 2010; is an application that allows banks to use a certain percentage of the Turkish Lira required reserves they are required to keep in the Central Bank as foreign currency or gold. Thus, the banks gain flexibility in Turkish Lira reserve requirements and increase their foreign exchange reserves. Reserve Option Mechanism (ROM), which is supposed to function as an automatic balancer in money and foreign exchange markets, also allows the Central Bank to control exchange rate volatility in domestic markets. Reserve Option Mechanism is also believed to have the power to control exchange rate volatility and interest rates in the markets at the same time of inward or outward capital flows. In this study, the effect of the Reserve Option Mechanism, which has been implemented by CBRT since 2010, on the money, exchange rate and interest rates in the Turkish Economy will be discussed.

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