Exporters React to Central Bank's Foreign Exchange Conversion Support Restrictions
It was stated that the 3% support rate offered by the Central Bank to companies converting their foreign exchange revenues into TRY has dropped to a symbolic level due to limitations.
New regulations in the 3% support mechanism provided by the Central Bank of the Republic of Turkey to companies converting their foreign exchange revenues from abroad into TRY have drawn the reaction of exporters. Sector representatives argue that the support has dropped to symbolic levels due to restrictions.
Support Rate Remained on Paper
Recent legislative changes in the 3% support mechanism offered by the Central Bank of the Republic of Turkey to companies converting their foreign exchange revenues from abroad into Turkish Liras have sparked debate in the sector.
Sector sources express that the incentive rate, which is maintained at 3% on paper, has regressed to symbolic levels in the real sector due to restrictions imposed on the amount of foreign exchange that can be sold.
Added Value and Turnover Calculation Limits
With the new regulation, the annual amount of foreign exchange that companies can sell within the scope of support was limited to the added value amount obtained from the calculation of labor costs and operating profit.
While the added value rate remains around 25% in an average industrial company, this rate drops to between 0.2% and 0.3% in sectors operating without profit or with a low share of labor.
Critical Meeting Held in Ankara
Following the emerging picture, Turkish Exporters Assembly President Mustafa Gültepe and some union presidents came together with CBRT Governor Fatih Karahan in Ankara on Monday, October 12.
During the meeting, representatives of main sectors put current restrictions and financing difficulties on the table, conveying that the applied method creates a heavy prescription.
CPA Report and Additional Cost Burden
It was made mandatory to have a notification form approved by a certified public accountant or sworn-in certified public accountant prepared in order to prove that the 10% foreign exchange position limit brought by the new legislation has not been exceeded.
While exporters expressed that the obligation to obtain a report every 15 days imposes an additional cost of over 100,000 TL per month on companies, Governor Karahan stated that all topics will be evaluated with a constructive approach.