Foreign currency printing production is being smuggled abroad

Approximately The oppressive policies that have continued for a year and a half to keep exchange rates at a certain level have started to smuggle especially export-oriented production out of Turkey. Vahap Küçük, Chairman of the Board of Directors of LC Waikiki, said that the exchange rate, which remains at a certain level in the face of high inflation and rising costs, forces competition and reduces exporters’ income, “If foreign exchange pressure continues in Turkey, it becomes mandatory to supply overseas consumption from abroad.

THE CURRENCY SHOULD BE 25 TL

We have to produce the product that we will sell in Russia either in Bangladesh, Myanmar or other countries in Africa and send it there. Because our competitors do too. Developments require this,” he said. Responding to our questions about developments in the sector at the Uludağ Summit, Küçük stated that the minimum wage increased by 100 percent and energy increased by 200 percent, adding that there were a large increase in other cost inputs such as cotton and chemicals.Noting that the retail and garment industry loses its chance to compete if inflation and foreign exchange increases do not go hand in hand at the same pace, Küçük said: “The The power of production depends on the policy that the governments adopt. We do not know what the policy of the next government will be on this issue, but what must happen is that the exchange rate increases at the same rate as inflation, and it must go one by one Currently, the required level of the currency is between 23 and 25. Our exporters also foresee this”.

Winter products with an increase of 30 percent

Noting that the production of winter products in the sector has started, Vahap Küçük stated that the price increase in winter products will remain below the inflation rate and that the products will reach the showcases with increases of 20 to 30 per cent. Küçük stated that the fiscal practice in production, especially in spinning, also weakened the exporter. Explaining that they closed last year with a turnover of 3 billion dollars, Küçük stated that this year they are aiming for a turnover of 5 billion dollars, half of which will be from stores abroad.