IDMIB: exporter caught between TL costs and the exchange rate

Speaking at the 9th Leather and Fur Fair organized by the Turkish Leather Confectioners Association in Antalya, Istanbul Leather and Leather Products Exporters Association (IDMIB) Chairman Güven Karaca stressed that exchange rates remained below the required level and that the industries had difficulties due to this situation.

Expressing his views on the matter, Karaca said, “When we look at the last year, our TL costs have increased, while the exchange rate has remained at the same level. With this kind of change, it is difficult to meet the rising cost of TL and compete with our competitors. The exporter is caught between TL costs and the exchange rate,” he said.

‘THE NEED FOR WORKING CAPITAL HAS EXPANDED 4X’

Saying he supports the statement by Mustafa Gültepe, chairman of the Turkish Exporters’ Assembly, that “exchange rates should rise in step with inflation,” Karaca said: “Of course, none of us want inflation to happen. . But if there is inflation, the exchange rate should increase accordingly. When we look at the last year, the exchange rate is at the same level,” he said.

Karaca said that if a company needed 1 million TL of working capital last year, today this need has increased to 4 million TL.