Abstract:

The developed countries have since the mid-1970s passed from the fixed currency system to the flexible currency system. With the transition to the free currency currency system, the currency currency forecasts have also gained importance. Applied studies in financial literature have shown that the currency series dynamics are in the form of time series that show the unit root behavior. The existence of the equalization relationship between currencies indicates that it is a long-term balance relationship and indicates that there may be Granger causality between currencies. Based on this information, it will be possible to predict the value that a currency will receive with the other currency. The aim of our study is to identify the time-series characteristics of the Euro and Dollar currencies, taking into account the part-time-series literature, to explore the long-term relationship between the series based on these characteristics, to see the impact of the 2001 crisis and policy changes on the currencies, and to provide comments on the consistency of the predictions gained importance along with the wave currency policy.

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