Foreign Exchange Exposure Perception and Management of Turkish Smes‪.‬

Introduction The last decade has witnessed alarmingly volatile movement of the value of Turkish Lira against foreign currencies. For example, as the statistics of Turkish Central Bank (2004) say, the nominal value of Turkish Lira vis-a-vis 1 Euro depreciated from 628,301 TL on January 1, 2001 to 1,303,172 TL on January 1, 2002. This ever-increasing degree of exchange rate volatility has elevated the management of foreign exchange (FX) exposure to the position of prominent managerial concern.