Is the Liraization Strategy of the Central Bank of Republic of Turkiye Successful?

This study aims to analyze the success of the “Liraization Strategy” introduced by the Central Bank of Republic of Türkiye. Liraization, the main component of unusual monetary policy, officially implemented from the beginning of 2022 to the second half of 2023. Using the policy texts of the Central Bank and literature review; regulations, tools and targets of the liraization strategy has been figured out. To evaluate the success of liraization, realization of the goals has been examined employing real data and graphical analysis. The outcomes indicate that the strategy has failed in price stability and financial stability. In addition, the current account balance has worsened. On the other hand, rising the share of TL in balance sheets of companies and bank via intensive regulations has caused to high cost on budget and the Central Bank. Also, market interventions to support TL have disrupted the market mechanism and relative prices; and have increased the inequality in income distribution.