A study on currency exchange rate movements and the changes in the İstanbul Stock Exchange

Currency exchange rates are closely associated with countries' economies and influence their economic decisions; they are important both in explaining various variables, and because of their important effects on variables that shape the economy such as investment, inflation, and foreign trade. Changes in currency exchange rates affect economic activities and influence the future. This is why currency exchange rate changes that reflect a regular structure will create an environment that is conducive to economic stability. This is why currency exchange rate movements have to be examined within the context of economic stability. The activities of money and capital markets are important in order to create economic stability, and the interactions between money markets and capital markets reflect on both currency exchange rates in money markets, and the prices of securities in capital markets. The supply and demand in markets are shaped by economic policies and daily developments may have serious effects on country economies such as economic crises. This study addresses Turkey as a special case, rather than the "big picture," examines the interactions between money and capital markets, currency exchange rate movements and changes in the security exchange, and explains the need for foreign exchanges.