Turkish exporters suffer from euro's decline in value

BURSA – Turkish exporters are suffering from the decline in value of the euro against the dollar, the head of the Uludag Exporters Association, Orhan Sabuncu, said on Wednesday.

Speaking at a press conference held in Bursa, Sabuncu explained that exporters pay most their expenses in dollars for imported raw materials, but receive payment for most of their goods in euro. 

The exchange rate for euros to dollars was at 1.36 last year, but declined to 1.18 as the fragile economic recovery stalled in the EU, while the U.S. economy consistently posted better-than-expected growth and unemployment figures.

Sabuncu warned that, as a result, Turkish export performance would become weaker. 

“In the automobile industry, for example, 74 percent of our exports last year were to EU countries, but 85 percent of them were paid in euros. As the euro declined against the dollar, export value declines, while volumes are stable,” Sabuncu said.

Sabuncu poınted out that the same amount of goods are beıng exported, but the loss of revenue due to the decline of the euro makes export performance seem weaker.

The head of Uludag Clothing and Apparel Exporters Associaton , Senol Sankaya, said that the sector makes 80 percent of their exports to EU countries,  and the drop in the value of the euro is likely to reduce profits in their sector in the near future.

During the period of January to November 2014, imports made in dollars represented 64 percent of Turkey’s overall imports, while 44.5 percent of exports were made in euro, according to data from the  Turkish Statistical Institute.

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