exchange rate should is being directly proportional to inflation levels head of The Turkish Exporters Association (TIM) announced on Tuesday.
Mustafa Gultepe said stability in The Turkish lira, despite the rise in inflation, is hurting the competitiveness of exporters and some of them risk losing markets. However, he did not suggest a specific level in the lira.
“salary for us to me compete And we sell our goods if the inflation is 60%. for For example, then exchange rate should move By 60%,” Gultepe confirmed during an interview with Reuters. Otherwise, exports side and production side Stop. “
Goltepe’s comments come as authorities used a battery of Regulations to strictly control the exchange rate in getting up of deep slice in lira in Late 2021, A.J year in As the Turkish currency lost 44% in favor of the United States dollar.
The currency fell another 29% yearbut it has stabilized since the summer and has been stable around 18.6 TL since early October.
while, price moderate increases in Turkey in November, official The data showed this week, indicating inflation pressures plaguing consumers for About year and a half Relief may be last.
annual consumer price CPI decreased to 84.39% last month, ending a 17-month cycle of Rises. Officials blamed inflation on Mainly higher commodity costs caused from Russia invasion of Ukraine, as well as other external factors.
The depreciation of the lira earlier gave exporters of Turkish textiles, white goods and cars big competitor edge worldwide. But since the mainframe bank And the government Employed reserves management systemHowever, those benefits are beginning to erode.
“The important thing, in the long runhe is reduce inflation. But in points when you can’t reduce That, exchange rate You must be supportive. Otherwise, we will lose markets,” Goltepe said added.
One of The main drivers of Economic Turkish growth this is yearexports hit recordLarge sizes all around first 11 months of this is year. However, A.J global Deceleration hitch mode on Foreigner demandparticularly among the largest Turkish companies trade Partners, led by Europe.
Outbound shipments rose 1.9%. year-over-year to $21.9 billion in November, while imports jumped 14% from a year earlier to $30.7 billion, mainly driven by sharp rises in Energy and commodity prices after Russia invasion of Ukraine. Foreigner trade Trading volume rose 8.6% from a year Before $ 52.51 billion.
Exports jumped from January to November by 14% from a year Before $ 231 billion, while imports up The data showed that 36.6% to approximately $331.1 billion. Foreigner trade was the size up 26.3%, to $562.35 billion.
under it new economic programa statement last yearTurkish government Looking forward to switching to current account surplus through increased exports, production, investments and lower interest rates, also with the aim of reducing inflation.
