Abstract:

In this study, it is aimed to analyze the microstructure of the Turkish foreign exchange market and to compare the findings of the foreign exchange market with the findings of the other countries. For this purpose, the survey is conducted to dealers who are authorized to deal in the interbank foreign exchange market. The survey findings show that the Turkish foreign exchange market has similar features with the other countries foreign exchange markets in the areas of determinants of spreads, competitiveness of the dominant big players, economic fundamentals role of determining exchange rate movements and use of order flow analysis, while it has different features in the area of effects of news. In the fields of speculation and central bank intervention, the Turkish foreign exchange market has similar features with some countries foreign exchange markets while it has different features from the others.

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