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Competition between Euro and US Dollar in international markets and in Turkey

Köse, Hasan
The aim of this thesis is to examine the extent of euro’s challenge to the US dollar as an international currency, focusing on comparisons between these two major currencies’ international roles and their private and official uses as a store of value, a medium of exchange and a unit of account throughout the world, and specifically in Turkey. The thesis evaluates the roles of the euro and US dollar as financing and investment, invocing, vehicle, reserve, anchor and intervention currencies basically in financial markets, foreign trade, foreign exchange markets, foreign exchange reserves and exchange rate regimes globally and in Turkey. The evaluations highlight the fact that the euro has been successfull as an international currency since its introduction in 1999 and is the second most widely used international currency in all the main international currency roles, after the US dollar. The findings of the thesis indicate that the use of the euro shows an increasing trend and the euro is likely to play an increasingly prominent role in the world, and specifically in Turkey.