Reaction ‘dollar scissors’ from the exporter: We are going to the Grand Bazaar

The fact that the banks’ buy-sell margin on foreign exchange transactions exceeded lira 1.1 meant that the exporter could not calculate the cost.

Speaking to Sozcu.com.tr, the vice president of the Eastern Black Sea Exporters Association, Ahmet Hamdi Gürdoğan, said that the widening of the difference between the buying and selling rates in foreign currency creates uncertainty in exports, they have difficulties to determine prices and cannot make long-term connections; The president of the Aegean Exporters Union, Jak Eskinazi, also said that he is concerned that if the exchange rate continues to open, there may be losses in the export markets.

Turkish Union of Chambers and Commodity Exchanges (TOBB) Assembly of Garment and Garment Sector Assembly Chairman Şeref Fayat, on the other hand, said that exporters also have significant demand for transactions of currency to go from the banks to the Grand Bazaar. in recent weeks, adding: “After the exchange difference between the official exchange rate and the Grand Bazaar increased to 5 percent, many exporters physically go and exchange currency at the Grand Bazaar.”

PURCHASE-SELL DIFFERENCE EXCEEDED 1.1 TL

In the first week of this month, the gap between the banks and the Grand Bazaar in exchange rates began to widen.

As of April 8, a citizen who wanted to convert their dollar to TL at any bank faced a rate of around 19.02, while in the Grand Bazaar this figure was 19.66.

Yesterday, while the dollar/TL interbank rate was trading at 19.40 levels, it was trading in the Grand Bazaar with a buy price of 20.37 and a sell price of 20.51.

At noon today, the buying price of the dollar/TL in banks was around 19.39-19.40, while the selling levels rose to 20.52, and the difference between buying and selling exceeded 1.1 TL.

In other words, although the indicative exchange rate for the dollar determined by the Central Bank is 19.39 to buy and 19.42 to sell as of today, exporters also face the exchange gap that opens up in banks when buying Dollars.

While 40 percent of export earnings are sold to the Central Bank, this transaction is made at 2 percent of the sales rate determined by the CBRT.

However, when the difference between the buying rate and the selling rate in dollars at some banks in the market approached 5 percent, the 2 percent advantage offered to the exporter was largely lost. Therefore, the exporter took the road to the Grand Bazaar to physically exchange the currency.

WHEN THE SCISSORS INCREASE TO 5 PERCENT, THEY FOLLOWED THE ROAD TO THE GRAND BAZAAR

Speaking to Sozcu.com.tr, TOBB Apparel and Ready-to-Wear Sector Assembly Chairman Şeref Fayat said: “We complain that we lost our chance to compete with Far Eastern countries due to the pressure on the exchange rate, and they said that the real value of the exchange rate should not be below the 24-25 level. The economic department tried to compensate for this situation by modifying the currencies exchanged by exporters by 2 percent above the exchange price announced by the banks. However, after opening the scissors, he was no longer attractive.”

Fayat said that after the difference between the official exchange rate and the Grand Bazaar increased to 5 percent, exporters lost again, saying, “In recent weeks, many exporters wanted to physically go and exchange currency in the Grand Bazaar. . .” He continued as follows:

“Although it differs according to the cash flow of each company, the exporter has started to have a tendency to physically change the currencies in the Grand Bazaar, except for the part that must be destroyed when it is brought into the country.”

IMPORTERS EXPORTERS MORE IMPACT

Giving the information that the opening of the buying and selling scissors in the exchange rate especially affects those who export based on imports, the president of the Aegean Exporters Associations, Jak Eskinazi, said: “Recently, the Complaints from exporters about this situation have increased. Even exporters in the agricultural sector are experiencing difficulties. For example, we receive many complaints from our sunflower oil exporting friends. They say they can’t export,” he said.

‘THE GLOBAL MARGIN IS CLEAR, THE CUSTOMER IS BEING IMPRESSIVE’

“If it goes on like this, you won’t be able to sell goods, you’ll lose your export market,” Eskinazi said.

Speaking to Sozcu.com.tr, the vice president of the Eastern Black Sea Exporters Association, Ahmet Hamdi Gürdoğan, like Eskinazi, is concerned that if the gap in the bid-ask exchange rate continues to widen, it may there are losses in export markets. .

‘EXPORTER HAS TO SIGN BEFORE SEEING ITS FUTURE’

“The exporter has to sign some jobs without seeing his future. We are trying to keep our export markets in our hands by sacrificing our profits because the exchange rate is already under pressure,” Gürdoğan said, adding: “Although exports continue to increase when the exchange rate is under pressure, it does not reach the level desired”. level. All this and the opening of the exchange gap is a handicap for the exporter.

Gürdoğan said: “Every exporter must also be a good accountant to be able to handle these jobs. For me it is a miracle that exports continue in such a complex system”.

EXPECTED LOSS OF 2 BILLION DOLLARS

On the other hand, the CBRT, which did not want a sharp increase in the dollar exchange rate before the elections, applied strict surveillance to the foreign exchange market, while exporters expected a loss of 2,000 million dollars in exports at the end of the year. anus. due to the pressured exchange rate.

Şeref Fayat said that they expect a decline of at least 10 percent in exports if the exchange rate continues to be suppressed with monetary policy like the current one until the end of this year, saying, “This means that we export 2 billion dollars less in current figures”.

Fayat summed up how competition with rival countries was lost due to pressure on the exchange rate:

“For example, the Far East would sell our merchandise at 14 euros for 12 euros, it would have been 20 percent more expensive, but due to our geographical proximity to the countries to which we export, our flexible production structure, etc. orders have been received.

When the difference is currently 14 to 10 euros, the orders we have started to change to Bangladesh, Pakistan, Vietnam, Cambodia and China.

Business stagnation, the fact that we are getting more expensive because the exchange rate is suppressed. Naturally, no one wants to pay an expensive 40 percent. The real value of the exchange rate should not be below levels 24-25”.