November 2000 and February 2001 Crises in Turkey

Disinflation Program which was launched in July 1998 in the framework of a Close Monitoring Agreement signed. The Letter of Intent submitted to IMF on December 9, 1999 was accepted and a Stand-By agreement was signed. The Program which covered a three-year economic process from January 1, 2000 was put into effect. The program was carried out successfully until the second half of 2000. However, Turkish Lira didn t fall at a rate stipulated by the program, a current account deficit in the balance of payments occurred along with problems in practice, and the concerns increased. Then, a heavy speculative attack was warded off with very high interest, substantial losses in foreign exchange reserves, and a supplemental IMF loan amounting to USD 7.5 billion, but the restlessness in the markets in the first months of 2001 which was caused by the liquidity crunch suffered in November 2000 gave rise to the second crisis after the launch of the monetary program as a result of the political tension on February 19. Due to increased demand for foreign exchange, the exchange rate was abandoned on February 22, 2001, and Turkish Lira was allowed to float, and the program was actually abolished.

Autorentext

Hakan Guclu graduated from Ankara University in 1996. He got his Master's degree from Istanbul Commerce University in 2005; his PhD. degree from Marmara University in 2010. His thesis was published by ISE. He has been working at the Istanbul Stock Exchange since 1997. He was invited by Syracuse University, USA, as a visiting scholar in 2008-2009.