Exchange Rates Come to a Point to Stop Exports

Exchange Rates Come to a Point to Stop Exports
Exchange Rates Come to a Point to Stop Exports

📩 24/11/2021 11:58

Turkey is experiencing great uneasiness due to the overvaluation of exchange rates against the Turkish Lira. Aegean Exporters' Unions Coordinator Chairman Jak Eskinazi said, “The extreme fluctuation in exchange rates has reached a level that will stop exports. Politicians should come up with a solution in order to reduce the fever of the foreign exchange”.

Aegean Exporters' Unions Coordinator President Jak Eskinazi emphasized that exporters, like all segments of the society, are experiencing great uneasiness due to the excessive fluctuations in exchange rates. Establishing that production and exports are about to stop, Eskinazi said, “Many inputs in the Turkish economy, especially raw materials, energy and logistics, are indexed to foreign currency. The fluctuation of 10-15 percent in one day in foreign exchange is not a wave that can be dealt with. This fluctuation causes great damage to both our businesses and our economy. “The equity of our businesses has eroded. There is no need to be a prophet, in the next stage, banks will come to the point where they cannot give credit. The point reached has already passed the point where the business world can find a solution. Urgent action must be taken. Politicians should come up with solutions together.”

Pointing out that Turkey has chosen the growth model with exports, Eskinazi continued his words as follows:

“We have earned 1 billion dollars in foreign exchange in the last 216 year period for Turkey. We have the potential to increase our exports to 5 billion dollars in the next 300 years. There is a misconception in the public that exporters are happy with the appreciation of exchange rates against TL. We are a part of Turkey, if Turkey's hand bleeds, we will bleed too. The interest rate cut decisions taken by the Central Bank one after the other removed the ash from the fire. Urgent cooling measures should be taken, the fire of the currency should be extinguished.”

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