Exporters Demand Fine-Tuning for New Era in Foreign Currency Conversion Support
While the new foreign currency conversion support system implemented by the Central Bank of the Republic of Turkey has been welcomed in the business world, industry representatives shared their expectations for adjustments in limits and rates.
The new foreign currency conversion support prepared by the Central Bank of the Republic of Turkey to encourage exporters to convert their foreign currencies into Turkish lira entered into force as of October 1. Although industry representatives welcomed the positive steps in the practice, they conveyed their demands for the revision of support rates and limits.
New Era Begins in Support
The new era in the foreign currency conversion support implemented by the Central Bank of the Republic of Turkey to encourage exporters to convert their foreign exchange resources from abroad into Turkish lira was put into effect as of October 1.
Important Criteria in the New System
With the new system, while the commitment not to buy foreign currency for one month was completely removed, companies' foreign exchange positions and the added value they create were made more decisive in benefiting from the support.
While the annual support per company was capped at 100 million TL, the 10 percent criterion for liquid foreign exchange assets was among the most striking elements of the new regulation.
Call for Fine-Tuning from Industry Representatives
Industry representatives found the removal of the commitment not to buy foreign currency and the linking of support to added value positive, while pointing out that fine-tuning needs to be made in certain points of the application.
Exporters demand that the support rate be increased above 3 percent, the 100 million TL ceiling be raised, the foreign exchange position limit be flexed, and bureaucracy be reduced.
Views of the Automotive and Electrical Industry
OİB Chairman of the Board Kemal Yazıcı stated that they found paving the way for foreign currency purchases positive, but they want the foreign exchange position limit to be increased to 15 percent.
TET Chairman of the Board Mehmet Kavaklıoğlu stated that the 100 million TL limit creates injustice for large exporters and suggested that the limit be increased.
Evaluations from Machinery and Cereals Sectors
MAİB Chairwoman of the Board Sevda Kayhan Yılmaz noted that they found the rationalization of the system positive and expect long-term predictability.
İHBİR Chairman of the Board Kazım Taycı announced that they will observe the impact of the application for a month and come together with the Central Bank again at the end of October.
Demands of Iron, Metal and Hazelnut Sectors
ADMİB Chairman of the Board Rahmi İncetan emphasized that the obligation of the CPA report creates a burden for small companies, while KFMİB Chairman Hasan Osman Sabır expressed that they expect a revision in the added value calculation.