mr. ercel discusses financial risk and its management address by the governor of the central bank of the republic of turkey, mr. gazi ercel, at the sixth annual global finance conference, bilgi university, istanbul, on 8 april, 1999 _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _, dpsohdvhgwrehkhuhwrgd \ irudnlqglqylwdwlrqri * oredo ) lqdqfh $ vvrfldwlrqdqgøvwdqexo % lojl university. today i like to discuss financial risk and its management which are one of the hot topics in the international financial circles. the 1980s and 1990s witnessed a major transformation in the international financial markets. the advent of more complex and dynamic transactions have substantially increased uncertainties in the marketplace, and, in today ’ s environment, dominated by a dynamic, aggressive financial service industry, market participants are exposed to greater financial risks than before. of course, there are several reasons for these changes. the first reason is the globalization of the international markets. markets all over the world are becoming consolidated into a vast world market as obstacles to the free movement of capital are gradually being removed. this can be seen in the present global crisis, which arose because problems occurring in one region of the world promptly made themselves felt by markets and investors in other regions. another reason is that the international markets have become much more volatile. volatility, which means the fluctuation of market prices and ratios, is one of the principal sources of financial risk. when market volatility increases, market participants are exposed to greater uncertainty - - and greater risk. still another change of conditions in the international markets is the appearance of new forms of investment with very complex structures. the great variety of these investment tools has led to the development of still others, like derivative instruments, aimed at reducing the degree of risk associated with several financial transactions. derivative instruments are being more and more widely used in the hope of reducing risk in the financial markets, but the losses coming from derivative operations have also begun to increase. the worldwide increase in the

ahap kavcolu : recent economic and financial developments in turkey speech by mr ahap kavcolu, governor of the central bank of the republic of turkey, at the 91st ordinary meeting of the general assembly, ankara, 28 march 2023. * * * esteemed shareholders, distinguished guests, before i start my speech, i would like to wish allah almighty's mercy on our citizens who lost their lives in the devastating earthquakes in february, i extend my condolences to their grieving families, and i wish a speedy recovery to those who are still being treated. i would like to commemorate again prof. yusuf tuna, our esteemed professor and member of the monetary policy committee, who passed away last year. before moving on to the agenda items to be discussed at the general assembly, i would like to share with you our assessments regarding the macroeconomic outlook and our monetary policy implementations. in the last part of my speech, i will summarize our activities in 2022. distinguished participants, in 2022, while the negative effects of the pandemic had not yet been fully eliminated, as a result of the russian - ukrainian war that took place in turkiye's immediate region, supply constraints appeared again and particularly energy prices and global commodity and food prices rose rapidly. in addition to the geopolitical uncertainties that emerged due to the war, the supply - demand imbalances that persisted in the aftermath of the pandemic caused inflation to increase rapidly on a global scale, reaching historically high levels. in addition to all these developments, global financial conditions tightened, and 2022 was marked by exceptionally high levels of geopolitical, economic and financial uncertainties. in 2022, the turkish economy continued to grow uninterruptedly despite global supply shocks and unfavorable geopolitical developments stemming from the russianukrainian war. economic activity was particularly strong in the first half of the year and maintained its robust outlook in the second half of the year despite the decrease in external demand. accordingly, in 2022, the turkish economy grew by 5. 6 %, ranking among the top g20 and oecd countries thanks to its growth performance since the last quarter of 2019. in addition, turkiye ranked ninth in terms of national income calculated according to purchasing power parity and doubled its share in the global economy. in 2022, the turkish economy reached the highest level of national income in terms of us dollars since