Nov 27 2017

Turkish lira's slide threatens stores with closure: body

The slide in the lira against major currencies means Turkish stores may be forced to shut down because costs are increasing too fast, said the head of an industry body.

Sinan Öncel, who runs retail and brand association Birleşmiş Markalar Derneği (BMD), said companies were facing a crisis because of the high cost of imported goods and rental contracts, which are usually set in foreign currency, Habertürk newspaper reported on Monday.

Urgent steps to stabilise the currency are needed to avert closures and redundancies, Öncel said.

BMD members employ almost 400,000 people, selling 412 different brand names, in areas such as clothing and cosmetics, in 360 shopping centres across the country.

The lira has lost 13 percent of its value since mid-September after political tensions between President Recep Tayyip Erdoğan's government and the United States escalated, and the central bank resisted calls for rate hikes as inflation accelerated.