Dec 07 2018

Turkish export transactions in lira almost halve despite Erdoğan calls

The proportion of Turkey’s export transactions denominated in liras shrank this year after the currency slumped against the dollar, Cumhuriyet newspaper reported on Friday.

Exports of goods and services conducted in lira fell to 4.5 percent of total exports in the first 10 months of this year, the equivalent of $6.2 billion, down from 8.9 percent in the same period of 2017, Cumhuriyet said. Exports denominated in euros rose to 50 percent from 47.8 percent and in dollars to 41.7 percent from 39.6 percent, it said.

In recent years, Turkish President Recep Tayyip Erdoğan has called on trading partners in the Middle East, Africa and other markets to exchange goods in local currencies to help reduce the dominance of the U.S. dollar and other major currencies.

The proportion of import contracts fulfilled in liras fell to 5.2 percent of total in the first 10 months compared with 7.6 percent a year earlier, Cumhuriyet said. The proportion in dollars rose to 60.9 percent from 58.2 percent and in euros to 32.5 percent from 32.3 percent, it reported.

The lira has lost almost a third of its value against the dollar this year after concerns about an overheating economy were exacerbated by a political crisis with the United States. Firms conducting international trade prefer to use currencies that are stable in order to predict income and profits