CURRENT ACCOUNT DEFICIT When devaluation (losing of currency value) occurred the country’s export increase and import decrease. Thanks to that current account deficit (export-import) lowered. In the below chart; due to the devaluation of Turkish Lira, the current account deficit was improved until 2020. Why this thesis didn’t work for 2020? Because of the covid restrictions many countries did lockdown. They closed their economy so Turkey coldnt use its currency advantageous to export more. In addition to that, tourism income decreased because of travel restrictions and concern of people . That destroyed tourism income for 2020 and caused more worse current account deficit for Turkey. EXCHANGE RATE Credit impulse led to import because people tried to protect their saving with gold and other foreign exchange against high inflation. This caused the highest dollarization rate. By the way, the central bank spend over 100 million dollars to keep exchange rate in the low level rat