ISO President: We are against overvaluing and devaluing the TL.

Erdal Bahçıvan, Chairman of the Board of Directors of the Istanbul Chamber of Industry (ISO), spoke at the joint meeting of professional committees held today.

Bahçıvan said: “We are sensitive to the high volatility of the TL decline. We know how the Central Bank’s policies, which sometimes make TL more valuable than necessary, reduce the competitiveness of the Turkish real sector. “We are against overvaluing the TL and devaluing it too much,” he said.

‘THE POLICIES OF RECENT YEARS HAVE NEGATIVELY AFFECTED INDUSTRIALISTS’

Bahçıvan’s notable statements are as follows:

*The damage caused by the move away from rational policies in recent years has negatively affected industrialists.

*There are still negativities from past times in some aspects of our business life.

*The new economic management strives to achieve a new balance in the economy through intensive consultations with representatives of the real economy.

*We must accept that in periods of high inflation very high prices are paid in the long term.

*As ISO, we attach importance to the independence and principled stance of the Central Bank as the most important institution of predictability for us.

*Turkey’s long and short-term financing has been in trouble due to the negative image that has emerged recently, it is important that the trust environment is reflected in the fall of the CDS.

*We expect a rapid flow of resources to Turkey in the coming months, so I believe there will be a significant improvement in the real sector’s access to financing.

*It is very valuable that investment commitment loans are put into practice, at least for certain sectors.

*The new management of the CBRT assumed a period of high inflation, and there are different damages caused by this period in the economy; We agree that it takes a reliable program and patience.

*It is important that the OVP succeeds, the cornerstone of the fight is to defeat inflation; The recession in the raw materials market will have a positive impact on the course of events.

*It is necessary to strengthen the muscles of Eximbank much more, which is the commercial partner and the most important financial shareholder of our industrial exporters.

*We hope that the CBRT will be a supportive institution to eliminate obstacles that may arise in the face of financing for exporters.

*We advocate for our Development Bank to become Turkey’s most important institution for long-term industrial financing, but it is already too late to achieve the intended goal.

EVOLUTION OF EXCHANGE RATES

*We are sensitive to the decline in TL value and high volatility.

*We know how the Central Bank’s policies, which sometimes make TL more valuable than necessary, reduce the competitiveness of the Turkish real sector.

*We are against overvaluing the TL and against devaluing the TL too much.

*We expect the pace of fund inflows to increase, supported by the CBRT’s reserve increase policy, and provide resources for the creation of supports that can prevent excessive volatility in the exchange rate.

*We welcome the elimination of regulations that prevent the healthy functioning of the free market, but the obligation of exporters to exchange currencies continues.

*The steps taken in the selective application of credits are positive, we expect a similar package in long-term investment loans and export credits.

*The most important issue that we want to request from the President of the CBRT is to ensure the creation of platforms where bureaucrats and institutions in the sector work together. (REUTERS)