Fallowing 1980, practice of exchange rate systems in Turkey: in the context of foreign competition and trade balance

The competition notion has become important in the context of foreign trade after liberalization of financial markets and globalisation of the economies. All of the countries try to get much of from the trade and play as an important role in the international trade. So the exchange rate policies have become one of the important indicator of competition. But there is no consensus among economists about ?Which exchange rate system is the most successful system for increasing competition power??. In this paper, we tried to investigate effects of the exchange rate policy in the context of competition in case of the Turkish economy. At the end of this study, we imply that development of financial deepening is essential to increase competition in foreign trade sector.