Using common interstate currency: Applicability between Turkish states

This study has been written with the aim of investigating the applicability of a common currency usage among the Turkic states. The research method employed in this study is situational, aiming to define the concept of monetary union and to compare the systems of monetary unions worldwide in order to establish a common ground for the currency of the Turkish Republics and Turkey. The study adopts a mixed research method, relying on both quantitative and qualitative data, and discusses the stages of achieving monetary unity. It is observed that the success of intercountry economic integration and monetary union is generally dependent on consecutive stages. These stages include the full and irrevocable convertibility of the currency, reduction of exchange rate fluctuations, the establishment of an unchanging fixed price stability, and the complete liberalization of capital movements between member countries. These stages are also relevant for the economic integration and monetary union of the Turkic Republics. In this thesis, it has been concluded that after taking these steps, the establishment of a common central bank would lead to successful economic integration and monetary union among the Turkic Republics. Keywords: Monetary Union, Turkic Republics, Economic Integration, International Trade, Economic Development.