Özet:

Foreign exchange markets determine equilibrium exchange rates that balance the supply and demand. But the equilibrium in the exchange markets may not mean balanced foreign trade. Foreign exchange entering the country through borrowing, and inflow of short-term foreign capital, results in overvalued TL and serious foreign trade deficits. The foreign trade deficits on the other hand causes serious economic problem. Since 2001 crises, due to foreign borrowings and the inflow of short-term foreign currency, foreign trade deficit of Turkey has been increasing due to overvalued TL. Increasing foreign trade deficit means loosing production and employment. Since tourism revenues and workers remittances cover only a part of these deficits, the increasing current account deficits introduces significant risks

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