Özet:

Deposit dollarization is defined as resident people's preference for foreign currencies instead of national currency when accumulating value. Turkish banking sector’s foreign currency deposits/total deposit ratio has increased rapidly, especially in recent years, and has exceeded 60%. Determining the factors that cause deposit dollarization is important in terms of measures to be taken for dollarization. In this research, the relationship between the foreign currency deposit / total deposit ratio in the Turkish banking sector with the consumer confidence index and the USD/TRY exchange rate was analyzed using monthly data between 2012:01 - 2022:01. The Engle-Granger cointegration test was used to analyze the relationship between the variables, and the Granger causality test was implemented to determine the direction of the relationship between variables. There is a long-term reciprocal relationship between the USD/TRY exchange rate and consumer confidence index variables with deposit dollarization detected in the Engle-Granger cointegration test. Besides, no mutual causality relationship between deposit dollarization and consumer confidence index was detected in the Granger causality test. In addition, it has been determined that there is a one-way causality relationship from deposit dollarization to USD/TRY rate, but there is no causality relationship from USD/TRY rate to deposit dollarization.

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