Turkish exporter demands weaker Lira, decries regulatory burden

Turkish exporters have “no chance” of competing against global rivals at current exchange rates, a top businessman said, calling for a weaker lira and an end to what he called pressure on companies from the central bank.

“We are trying to preserve our capital,” said Jak Eskinazi, head of the Aegean Exporters’ Associations, at the group’s general assembly on Monday. “We have too many issues regarding access to loans. I hope the pressures from the central bank are removed as soon as possible.”

Those pressures include requirements for exporters to convert hard currency proceeds into liras and deposit foreign currency at banks in order to get credit, Eskinazi, 69, told Bloomberg on Tuesday. 

“If these policies continue after the elections, factories will shut down,” he said, adding that the lira should depreciate by about 20% to 25 per dollar in order for exports to become competitive again. 

Official data signal a slowdown in economic activity and rising pressure on the currency ahead of the May 14 elections, at which President Recep Tayyip Erdogan faces an unusually unified opposition alliance. Industrial output slumped 8.2% in February while the jobless rate rose to 10%, data published this week showed. The current-account deficit in the first two months of 2023 reached $18.8 billion, 85% of the government’s target for the whole year.