Thesis Defense - Erdi Mertcan Karagöz, M.Sc. Financial Engineering

EFFECTS OF WAGE PAYMENT DAYS ON USD/TL

FOREIGN EXCHANGE RATE IN TURKEY 

Erdi Mertcan Karagöz, M.Sc. Financial Engineering

Date: June 10, 2019

Time: 12:00

Location: Özyeğin University Financial Engineering Center, Altunizade, İstanbul 

Thesis Committee:

Dr. Muzaffer Akat, Advisor, Özyeğin University

Dr. Levent Güntay, Özyeğin Üniversity

Assoc. Prof. Dr. Ersin Özuğurlu, İstanbul Technical University   

Abstract:

This paper examines and analyzes changes (increase, decrease otherwise) in US Dollar against Turkish Lira foreign exchange rate returns in some calendar days such as wage payment days in Turkish free foreign exchange market around turn of the month, beginning of the month, before holidays and mid-day of the month between years January 2003 and December 2018. It is an empirically proven fact by related literature that changes in foreign exchange rates steer foreign exchange deposits, overnight interest rates and outlook of Turkish economy. Dollarization in the Turkish economy directly affects the inflation expectations, thus causes a re-adjustment period for overall expectations on macroeconomic level. This paper focuses on the effect of wage payment days on dollarization behavior.  

Bio:

Erdi Mertcan Karagöz received the B. S. in Mathematics, İhsan Doğramacı Bilkent University Ankara, Turkey in June 2014.  He is pursuing a M.Sc. in Financial Engineering at Özyeğin University under the supervision of Dr. Muzaffer Akat.  Currently, he works as a liquidity risk supervisor in Garanti Bank BBVA.