Treasury transactions and functions: Turkish case

The efficient implementation of the budgets and the sound management of the public financial assets and liabilities are the one of the most important objectives of the governments. Because, the governments can achieve the goals of the fiscal policy by these objectives. The treasury functions are particularly important since they are closely related to the achievement of these objectives. The purpose of this study is to evaluate the treasury functions carried out in Turkey in respect of the international best practices. In this study firstly, the degree of the centralisation of the Turkish treasury system was evaluated comparatively with the Brazil and Norway Treasuries under the value chain model developed by Tandberg. It was concluded that while Turkish treasury system are more centralised than the Norway treasury system, it is less centralised than Brazil treasury system. Secondly, in our study Value at Risk methods were explained and local and foreign debt stock of the Turkey was evaluated in relation to susceptibility to the market risk under this model. According to the result of the model, it was concluded that the strategies which focuses on the yen currency prone to the currency risk and that the strategies which focuses on the euro currency provide more hedging from the currency risk. Keywords: Treasury functions, debt management, cash management, asset management, value chain model, value at risk (VAR) method.