The Central Bank which made its last intervention to the market on 4 January 2012, broke the silence by the dollar rose to 2.2975 TL and intervened the rise in the exchange rate on January. From the extraordinary meeting of the Monetary Policy Committee of the Central Bank, above expectations, interest-rate hike decision was made. On this case, a number of statements were made by Turkish Exporters' Assembly and textile exporters associations.
Economic Stabilization Must Be Protected
Turkish Exporters' Assembly (TİM) President Mehmet Büyükekşi whom evaluated the interest-rate hike of Central Bank, stated that they hope for the interest-rate hike to provide balance and stability in exchange rates. TİM President Mehmet Büyükekşi continued to his statement: “As Turkish Exporters' Assembly that represents 58 thousand exporters, we have repeatedly emphasized at every opportunity so far, that a balanced, stable and predictable exchange rate level is of great importance for sustainable export growth. But by FED's taking steps in finishing monetary expansion, including all developing countries, the whole world began to experience significant fluctuations. As a result, we have observed that the money of developing countries started to lose value. At this point, the Central Bank's interest-rate hike decision appeared to be inevitable.
Recent developments shows that, raising interest rates could not remedy by itself to socio-economic and socio-political fluctuations. That's why we believe that we all must pay a lot of effort protecting the economic stability which is the biggest reason for the success of Turkey's economy in recent years. We think that, the economy will not benefit in medium and long terms from speculative movements and statements.”
Decisions That Protects Manufacturers Should Be Taken
Istanbul Textile and Apparel Exporter Associations President Hikmet Tanrıverdi who evaluated the interest rate decision defending that the bill of high interest would be paid by SME's, said: "If this intervention was applied by the Central Bank with different instruments in December, the problems would not be so chronic. Now, it is trying to solve this problem with the rate that disrupts the entire balance. In fact the point we have reached today is what the financial markets want. But it also is unclear if it will treat the wound. The Central Bank has left itself in the hands of the big players. After that, unfortunately, it will have to do whatever the big players want.This will be a tough year.
Interest rates rose above expectations.If the interest rate of Central Bank reaches 10-12, the interest rate that SME's use would be over 20. On the one hand high interest rates, on the other hand high rates will put the sector into stress. The manufacturer SMEs which their interest cost will highly increase should expect tough times. We know that the economic management not only consists of the Central Bank. Therefore, we expect from the government to act with common sense, especially to make decisions to protect the companies.”
To Hit The Export Target Would Be A Success
İstanbul Textile and Raw Material Exporters' Association (İTHİB) Chairman of the Board İsmail Gülle said that, price of the instability high interest rates and exchange rate is being paid by the non-financial sector.
The statement of İTHİB Chairman of the Board İsmail Gülle is as follows: "The Central Bank has been under pressure on interest. The Central bank that has postponed the interest gun, made an interest-rate hike more than the expected. The Central Bank had to take bolder decisions for the real sector. At this point, price of the instability high interest rates and exchange rate is being paid by the real sector. Under the existing conditions, to meet the export targets in the medium terms would be a success. Presidents of the Central Bank,needs to give up uncontrolled extreme valorisation policy in the slightest fragility to the Turkish Lira which is being oppressed for a long time. Every year increase in the rate of inflation rates is needed to be experienced so there won't be largely difference in exchange, image damage in TL and growth target changes."
Fluctuations in the Exchange Rate Harms the Business
Turkish Clothing Manufacturers Association (TGSD) President Cem Negrin, "We hope that the Central Bank realized how we need steady and fine-tuning that will prevent such a rapid fluctuations of foreign exchange. Remaining within 1 month, if the garment exporters that sell products didn't forward, that means they are in a serious damage. In the global competitive environment, if the earnings of the exporter that runs in extremely low profitability goes to exchange rate uncertainty, the loser would be Turkey. I believe that it should be well known. Fluctuations in the exchange rate respectively will harm importer and the exporter. Including Central Bank, it would be much more useful if all the actors of economic management moved from this perspective."
