Eren Holding boss: If the dollar rose enough, textile manufacturers would not go to Egypt

Ahmet Eren, chairman of the board of directors of Eren Holding, complained about the level of the minimum wage and the increase in the dollar exchange rate.

Eren, who made assessments on the Bloomberg HT broadcast he attended, stated that the minimum wage is low in Egypt and said: “Friends who invest there say that ‘the minimum wage here is quite low compared to Turkey and as “There is enough devaluation, we can sell it at a profit.” However, the general suffering of almost all export-related sectors in Turkey is that the dollar or foreign currency does not rise enough. “If it had increased, maybe this migration wouldn’t have happened so quickly,” he said.

Eren said: “Turkey does not want to increase the exchange rate in such a situation, because when the exchange rate increases, inflation increases, but the real pressure on the exchange rate is the current account deficit.” he said.

Eren stated that the countries where textile exports are concentrated are generally third-class countries and that jobs are moving to Vietnam, Bangladesh and Egypt: “Of course, Turkey must stop being a country with cheap labor. “We need to turn to more technological products,” she said.

Eren also said that industrialists should be helped to access financing.

Emphasizing that the role of monetary policy in closing the current account deficit is secondary, and that the current account deficit can be closed in the long term with structural reforms, industrial plans, medium-term plans and educational policies, Eren assessed: “Otherwise, exports cannot be sustained with a policy based on cheap TL.”