“We are worried that the Turkish lira will gain much in value against other currencies following a fresh cash inflow from the IMF and that this would discourage our exporters,” Büyükekşi stated. He said Turkish exporters purchase products in lira from the local market and sell them in foreign currencies, mostly US dollars and euros, to other countries.
Büyükekşi’s remarks came in the wake of recent similar statements by observers and union representatives. Turkish Union of Chambers and Commodity Exchanges (TOBB) head Rifat Hisarcıklıoğlu shared the same concern with Today’s Zaman as early as last week. Observers have argued that Turkey could experience a contraction in exports as companies refrain from producing but instead opt to import products.
Noting that TİM maintains hope for a recuperation in Turkey’s exports in 2010, Büyükekşi emphasized, however, that the central bank should “take the TL under control before it’s too late.” The union head brought to mind, following recent reports that the government was close to signing a stand-by agreement with the IMF, that the US dollar had lost value against the TL.
Protectionism a big threat to global trade
Büyükekşi also voiced concern over many countries turning toward protectionism, particularly since the emergence of the global financial turbulence last year, adding that this stands in the way of a healthy global market. According to the TİM head, the recent “Renault crisis” is an example of the current level that worldwide protectionism has reached. Following an intervention by French President Nicolas Sarkozy, the country’s auto giant Renault had to back down from a plan to manufacture its new model, Clio 4, at a plant in Bursa. Sarkozy convinced the automaker to move the production of some 100,000 of an anticipated 245,000 Cilo 4s to a Paris plant. Büyükekşi said every country, particularly G-8 members, and France being one of them, must keep its promise to battle protectionism.
