Abstract:

For developing economies such as Türkiye, it is accepted in the current literature that exchange rates influence the economic activity. Exchange rates changes are rapidly reflected in the real sector. Especially after 2016, the exchange rate shocks in Turkey caused the exchange rates to be considered again. There are many studies in the literature dealing with the relationships between exchange rates and different economic variables. The difference of this study is that it examines the relationships between the exchange rate and the real sector reaction. For this purpose, this study uses commercial loans which given by banks. Commercial loans are the types of loans that businesses use to finance investment or pay off debt. For the exchange rate effect, the foreign exchange market pressure index (DPBE) was used. The results of the study show that the foreign exchange market pressure influences the commercial loan usage rate.

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