Turkish Exporters Assembly President Mehmet Büyükekşi pointed out that more than half of exporters sell goods to Europe and each 1 point growth of EU economy means 4% increase of export to EU. Mentioning that effect of negative parity decreased and companies should learn reducing risks of exchange rate and parity, Büyükekşi stated:
“European Central Bank's reducing interest and increasing the volume of monetary expansion was the most significant subject on agenda of world economy in the last week. Additionally, reducing estimates of growth for Europe has a critical value in terms of Turkey.
Due to being our biggest export market, Europe is the region which we follow closest. More than half of our 63 thousand exporters who exported last year made export to Europe. No matter how 43% of our total export is made to EU, more than half of our companies export to this region.
Growth and health of European economy means increase of our export to this region. Each 1 point increase in EU's growth speed means 4% increase of our export to EU. Therefore, growth expectation which was reduced last week has an effect that might decelerate our export to the region. However, we are aware of the improvement in the last two years and prospective positive expectations in EU economy and we are taking necessary steps.
The comments that prospective interest discounts declared by European Central Bank are finalized are positive developments both in terms of next period and causing appreciation of Euro. Euro/dollar parity which closed around 1.1160 on Friday night shows that fierce negative parity effect we have been feeling since 2015 will abate. If trend continues in this direction, we can see that negative effect will start to disappear as of march. This is a favorable development for our export.
Tomorrow (March 14th 2016), as TIM, we are holding a conference with Borsa İstanbul in Foreign Trade Complex. This meeting pertains to financing of foreign trade and reducing risks brought by trading with different currencies. In this meeting, information will be provided concerning hedging the risks on companies brought by fluctuations in values of currencies such as euro, yen, sterling, ruble and dollar. We should reach such a stage that our export and exporters get affected minimum by fluctuations both in commodity prices and currencies. As TIM, we are pursuing our works with this understanding and purpose.”Published on Thursday, August 25, 2016