ABSTRACT
During the period leading up to adoption of the Euro there are three steps that Turkey must consider. Until entry into the EU is secured, Turkey retains control of its exchange rate policy, implying freedom over its monetary framework and the exchange rate regime. Upon accession, the exchange rate policy of Turkey becomes a common concern for the EU. Turkey will be expected to join the Exchange Rate Mechanism (ERM-II) at some point after accession for a period of at least 2 years. Finally, after fulfilment of the Maastricht criteria, Turkey will have to adopt the Euro.
