Central Bank of Turkey
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| Headquarters | Ankara, Turkey |
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| Coordinates | 39°56′21″N 32°51′08″E / 39.939167°N 32.852222°ECoordinates: 39°56′21″N 32°51′08″E / 39.939167°N 32.852222°E |
| Established | 1932 |
| Governor | Murat Çetinkaya |
| Central bank of | Turkey |
| Currency |
Turkish Lira TRY (ISO 4217) |
| Reserves |
$127 Billion Foreign ex. |
| Preceded by | Ottoman Bank |
| Website | www.tcmb.gov.tr |
$127 Billion Foreign ex.
The Central Bank of the Republic of Turkey, CBRT (Turkish: Türkiye Cumhuriyet Merkez Bankası, TCMB) is the central bank of Turkey and is founded as a joint stock company on 11 June 1930.
Shares of the CBRT are divided into four classes. Class A shares belong solely to the Turkish Treasury. Class B and Class C shares are allocated to national banks operating in Turkey, banks other than national banks and privileged companies. Finally, Class D shares are allocated to Turkish commercial institutions and to real and legal persons of Turkish nationality.
The CBRT determines, at its own discretion, the monetary policy to pursue and the policy instruments to use in achieving price stability in Turkey. This implies that the CBRT enjoys instrument independence. In order to attain its objective of price stability, the CBRT has implemented a full-fledged inflation targeting regime since 2006.
The preparations to establish a central bank of Turkey began in 1926, but the organization was established on 3 October 1931 and opened officially on 1 January 1932. The Bank had, originally, a privilege of issuing banknotes for a period of 30 years. In 1955, this privilege was extended until 1999. Finally it was prolonged indefinitely in 1994.
In the Ottoman Empire, economic activities such as Treasury operations, money and credit transactions and trade in gold and foreign currencies were executed by various establishments such as the Treasury, the Mint, jewelers, moneylenders, foundations and guilds. In this organizational structure that prevailed until the second half of the 19th century, the Ottoman Empire minted gold coins on behalf of the Sultan. The Ottoman Empire put cash banknotes (Kaime-i nakdiye-i mutebere) into circulation in 1840. During the Crimean War, in 1854, the Ottoman Empire, which borrowed from other nations for the first time in history, needed a state bank to assume an intermediary function in the repayment of external debts. As a result, the “Ottoman Bank (Bank-ı Osmanî)”, headquartered in London, was established with English capital in 1856. The fundamental powers of the Bank were limited to lending in small amounts, making advance payments to the Government and discounting some Treasury bills.
In 1863, the Ottoman Bank was dissolved and restructured as an English-French partnership under the name “Bank-ı Osmanî-i Şahane (Imperial Ottoman Bank)” and became a state bank. The Imperial Ottoman Bank was granted the sole privilege of issuing banknotes for a period of thirty years. The Bank, acting as Treasurer of the State, was assigned to collect State revenues, make payments on behalf of the Treasury and discount Treasury bills, as well as making interest and principal payments pertaining to domestic and foreign debts. The capital of the Imperial Ottoman Bank retained by other nations triggered reactions in time and these reactions laid the foundation for establishing a national central bank. Efforts towards establishing a central bank with domestic capital culminated in the establishment of the “Ottoman National Credit Bank (Osmanlı İtibar-ı Millî Bankası)” on 11 March 1917. However, the defeat of the Ottoman Empire in the First World War prevented the bank from becoming a national bank, which would have assumed central bank functions.
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Wikipedia