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JAK ESKINAZI: LOW EXCHANGE RATE AND LOW INTEREST POLICY DON’T SUPPORT EXPORTS!

Press release…

Turkish Statistical Institute (TURKSTAT) data reveals that the low exchange rate-low interest policy supports imports more than exports!

While Türkiye had a foreign trade deficit of 46 billion dollars in 2021, it jumped to 110 billion dollars in 2022.

Jak Eskinazi

Commenting on Türkiye’s foreign trade data, Aegean Exporters’ Associations (EIB) Coordinator Chair Jak Eskinazi said that while the increase in the country’s export volume was 17 percent in 2021, it decreased to 5 percent in 2022, whereas the increase in the import quantity index was 3.3 percent in 2021, it escalated to 8.2 percent in 2022.

Pointing out that export products soared by 8 percent in value in 2022, while imports became 24 percent more expensive, Eskinazi said, “The hike in our imports is much higher than the hike in our exports both in terms of quantity and value. Türkiye is in an effort to reduce inflation and show high national income per capita with its low exchange rate-low interest policy. All of these are targets that sound good, but they do not coincide with the dynamics of the economy.”

“Since we switched to a low exchange rate and low interest rate policy, inflation has risen sharply and we have seen the highest levels of the last 25 years. Our foreign trade was adversely affected in this process. Our foreign trade deficit, which was 46 billion dollars in 2021, reached 110 billion dollars in 2022. This picture causes the inflow of foreign investment to Türkiye to be postponed in this period,” he added…

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