Textile Importers Head Towards Turkish Lira

Tanrıverdi: "It seems that the exchange rate of dollar will be around 2.20 – 2.30 until the local elections.’’.

  24 March 2014 08:22 Monday
Textile Importers Head Towards Turkish Lira

The details of ''17th Eurasian Economic Summit'', which will be held under the main heading of "From global to local -GLOCALIZATION", was shared with a press conference hosted by  Hikmet Tanriverdi, Chairman of Istanbul Textile and Apparel Exporters' Association (İHKİB);  Akkan Suver, Chairman of Marmara Group Foundation (MGV); Engin Köklüçınar, Vice Chairman of MGV; Özlem Kaya, Fashion Designer.By continuing to reflect Turkey's cultural side in the works of political, economic and intercultural dialogues, ''Eurasian Economic Summit", which has been organised for 17 years by MGV, brings together one-quarter of the world in Istanbul for sustainable development and future of the energy. In the gala night of the summit, which will be held with the support of İHKİB and where about 600 representatives will attend from over 50 countries such as Mexico, France, Senegal, Pakistan; a fashion show will be presented by Özlem Kaya, a fashion designer.Giving information about the event, Suver, the Chairman of MGV, pointed out to the fact that the president, the prime minister and the ministers as well as important figures, who are specialised in their fields, will attend the summit which turns into an international prestige union.

Migration Will Be Discussed

Stating that Chairman of Turkish Parliament Cemil Çiçek, Minister of Finance Mehmet Şimşek, Minister of European Union Mevlüt Çavuşoğlu and Development Minister Cevdet Yılmaz  will attend "17th Eurasian Economic Summit", Suver said: ''We will discuss human trafficking, called as 'Involuntary Migration', which is one of the most important problems around the world. The human trafficking including women, men, children, illegal workers, migrants and refugees reached a size that threatens civilization today. About 500 thousand women and girls, who are brought from Far East, the Middle East and CIS Countries, are sold in our region. On one hand we will draw attention such a gut-wrenching issue; on the other hand we will discuss problems and issues concerning the world with different perspectives.’’.Giving information about the summit which includes such main topics as "Sustainable Development and Change in Local Governments", "From Local to Global, Silk Road Future of Economy and Energy", "From Local to Global, Importance of Dialogue in Peace", "Development and Design, Development with IT Technologies", Suver said that a special session will be organized about design and they aim to introduce the design capacity in Turkey in this context.

"The Central Bank Should Reduce Ambiguity"

Drawing attention to discuss the design issue within the scope of the summit, Hikmet Tanrıverdi, the Chairman of İHKİB, expressed that they are in the preparation for opening a design university in the future period. Emphasizing that the apparel industry has an important mission for Turkey's economy, Tanriverdi continued his speech as follows:"Turkey has closed the financial year 2013 with export volume of 151 billion dollars and the apparel industry had 11.5 percent share of the total volume. Turkey's exports stagnated in 2013 with exactly the same performance of the previous year, but the apparel industry showed a growth by 8.5 percent compared to the year 2012. We aim to reach an export volume of 19 billion dollars in 2014. Our characteristic about leadership isn’t new for us. We have led in this field by giving advices for the economy of our country about exports and foreign markets for a quarter of century. ‘’.

“We Had Warned About the Rates”

In his speech, referring to the movements in foreign exchange rates experienced in recent period, Tanriverdi made the following assessments: ‘’We tried to explain the impropriety of the assessments including '1 dollar equals 1 lira.'; but the various environments have misunderstood us. The value of the rate was not at proper level. The situation of foreign currency wasn't net. If the foreign currency was worth at real value levels, large fluctuations over 20 percent had not been experienced in last three months. The foreign currency isn’t worth at real value levels.

It is so important for us how policies that will be applied by management of the economy will affect the foreign currency. The currency should reach its real value level and the inflation rate should be increased so that the exporters can profit by this situation. Today, the exporters are in a big trouble because of the rising rates of the currency. If the inflation had increased proportionally, the losses experienced today would have been much less.".Drawing attention that CBT should use a number of potentialities, Tanriverdi said: ''It seems that the exchange rate of dollar will be around 2.20 – 2.30 until the local elections. On the other hand, balance sheets of manufacturers and industrialists in the domestic market were upside down. They will experience serious problems during the negotiations with banks. The banks will make difficulties for companies about new credits because of the fragile ambient and deterioration of the balance sheets.’’.

Textile Manufacturers Abandon Dollar

About the Central Bank's decision related to dollar, Tanrıverdi continued his speech as follows: ''CBT stayed late to take precautions. CBT could have prevented this situation with not only monetary measures but also other instruments. What is needed now is that the management of the economy should make reassuring statements.  The market trusts Mr Babacan about this subject, Babacan should explain the process. I think that Babacan should explain the process instead of CBT.

Stating that even foreign countries don't want to order in dollar but in TL, Tanrıverdi: ''A textile manufacturer had received an order. Customer had insistently wanted to order in TL. Henceforth, the prices will start to reduce and decrease. This is a bad phenomenon for the sector. ''The management stayed late to take precautions. It should have prevented in December.''.


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