Abstract:

This article examines the significance and consequences of the Euro in European monetary integration and how it will affect the Turkish banking sector. For this purpose, the various stages of the realisation of European Monetary System (EMS) and,its theoretical context have been explained indetail.Furthermore,thefunctions of the Euro in the System and the advantages and the disadvantages it will create for Member States and non-member countries, have also been explained. The "TARGET" system, which was developed in order to facilitate settlement payments between the European Central Bank (ECB) and the national banking systems of the Member States, has also been studied. Conseguently, as the EMS is realized, the measures taken and the strategies adopted by the Turkish financial sector, especially in relation to the harmonisation of money and capital markets, have been evaluated. 

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