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Turkish Economy and Policies of
Opening Up Abroad |
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| Turkey pursued economic policies based on import substitution until 1980. A comprehensive stability program introducing radical reforms and transformations was put into force on January 24, 1980. Thus, Turkey abandoned the industrialization strategy based on substitution of imports and adopted a new policy focusing on and attaching priority to exports. |
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| Other reform policies gradually placed the priority on market mechanisms rather than public intervention. |
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 Money and Capital Markets: A Capital Markets Law went into effect in 1981 as a result of restructuring and other developments in the capital markets. Next year, a Capital Market Board was set up to regulate and supervise the capital markets. |
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| The İstanbul Stock Exchange (İSE), which played a substantial role in the development of the Turkish economy, was established on December 26, 1985. Stock brokers and banks are members of the İSE. The İSE experienced rapid growth as a result of accelerated expansion of investment funds and liberalization of terms for foreign investors to enter Turkish capital markets. At present, there are three markets operating in the İSE, including the Stock Market, Bonds and Bills Market, and the International Market. |
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| Today Turkey has one of the most liberal foreign exchange regimes in the world. Besides the free convertibility of the Turkish Lira to foreign currencies, new policies pursued since 1989 and Decision No. 32 in particular, lifted all limitations for foreign investors, individual and corporate, who wish to trade securities quoted in the İSE. Thus, Turkish stocks and bonds are open to foreign investors who can freely transfer their capital or profits abroad. |
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İstanbul Stock Exchange (İSE),
Dealing Floor - İSTANBUL |
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| In addition to the shares of 316 companies, six stock exchange investment funds were traded daily in the İSE as of the end of 2006. The daily average transaction volume in the İSE was 919 million USD in 2006. The daily transaction volume in the İSE Bonds and Bills Market Outright Purchases and Sales Market averaged 1.1 billion USD in 2006 and the same figure for the Repo/Reverse Repo Market averaged 7.1 billion USD. The İSE placed third among the developing stock exchanges and markets in terms of the transaction volume of the stock market and sixth in terms of market value the same year. The İSE Bonds and Bills Market Outright Purchases and Sales Market placed fifth among all stock exchanges dealing with bonds and bills in terms of the annual total volume of transactions. |
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| The İSE is a full member of the World Federation of Exchanges (WFE), Federation of Euro-Asian Stock Exchanges |
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