The Relation Between Financial, Economic Indicators and Foreign Trade-Related Loans: The Case of Turkey

Abstract

The purpose of this paper is to examine the relation between inflation, exchange rate (USD/TL, EUR/TL) and TRLIBOR (interest rate), which are among the main economic/financial indicators, and export loans related to foreign trade financing with particular reference to the Covid-19 Pandemic. Data is retrieved from BRSA, BIST-Connect Data Platform. The study covers Turkey for the years between 2015-2021. OLS method is employed. Findings of this paper is as follows; with some lag, the increase in export credits caused a decrease in the EUR exchange rate, while interest rates increased in parallel with the growth in export credits in the same period.