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Between 1914 and 1918,the Ottoman Empire was involved in the First World War,which had led to economic disruptions,huge budget deficits,surmounted inflation rates and excessive devaluation of Lira,the Ottoman currency.Based on the value of Lira against the currencies of three selected countries that were not in war,namely,Switzerland,Sweden and the Netherlands,this paper focuses on the news impact of a war on the foreign exchange rates at the(I)stanbul bourse from 1918 to 1919.In order to investigate the news impact of the war on the foreign exchange rates,firstly,we conduct a Bai-Perron test to endogenously identify the structural breaks in the data series.Our results signify some dates,which match the official announcements of the war events and/or the official treaties.Secondly,we apply a dummy regression analysis to exogenously examine the news impact of some important dates on the foreign exchange rate return series.The dummy regression analysis signal significant news impact of the Armistice of Mudros and the official announcement of the German defeat.Furthermore,from the time series,it can be seen that by September 1918,as the result of the expectations that the war would end soon,the Lira appreciated against the above three currencies for a short while.However,after the Armistice of Mudros and the Armistice of Compiégne,the Lira displays a significant and continuous depreciation.