@article{article_959754, title={The Effect of Foreign Currency Deposits of Residents on the USD Exchange Rate: The Effects of Dollarization between 1986-2020}, journal={JOEEP: Journal of Emerging Economies and Policy}, volume={6}, pages={170–178}, year={2021}, author={Ustaoğlu, Ümit}, keywords={Dolarizasyon, Mevduat, Döviz, USD, Döviz kuru}, abstract={<div style="text-align:justify;">This study aims to investigate the bidirectional effect of deposit dollarization on USD exchange rate for the period 1986:01-2020:12. The phenomenon of dollarization, which has been on the agenda again in recent years in our country, has been discussed in terms of deposit dollarization. Deposit dollarization and its effect on the US dollar exchange rate have been studied uninterruptedly, starting from the period after the transition to liberal economy, from the first periods when domestic deposits and the data set began to form, until today. Accordingly, dollarization had a significant effect on USD exchange rate. On the other hand, USD exchange rate was not found to have any effect on dollarization. Therefore, causality was determined to be unidirectional. Their changes influenced deposit dollarization and USD exchange rates. Effect of dollarization showed by the end of the tenth month with 15% of the variation. </div>}, number={2}, publisher={Seyfettin ERDOĞAN}