Over the past two years, Turkey has suffered from currency collapse and inflation.
In 2020, the new crown gave Turkey another blow, pushing it into a deep recession. Turkey’s local currency lira is collapsing at a record pace and its foreign-exchange reserves have bottomed out. Terminal connectors, pcb board to board connectors and Reflector Keyring should be noted.
In this case, Turkey raised a stick called Trade Protection.
Turkey’s economy has been in a long-term recession since the second half of 2018, let alone its fragile economy, exacerbated by the 2020 new crown epidemic.
Moody’s, the international rating agency, downgraded Turkey’s sovereign credit rating from B1 to B2 in September 2020 on the grounds that the country’s continued decline in foreign exchange reserves posed balance-of-payments risks, structural economic challenges and financial bubbles.
In the third quarter of 2020, the Turkish economy showed a recovery trend. However, according to the latest data of the Turkish Bureau of Statistics (TUIK), the consumer price index in Turkey increased by 1.25% in December 2020 from November and 14.6% from the same period in 2019.
Prices of miscellaneous goods and services, transportation, food and non-alcoholic beverages rose the most, at 28.12 per cent ,21.12 per cent and 20.61 per cent, respectively, compared with the same period in 2019.
Turkish President Recep Tayyip Erdoğan, though tough on foreign policy, is helpless at home.
In mid-December 2020, Erdoğan announced a number of bail-outs to help small and medium-sized businesses and traders survive the next three months. But economists say the measures, taken too late and on a small scale, may not have much effect on the battered Turkish economy.
According to MetroPoll latest survey released by pollsters 25% of Turkish respondents said they could not even meet their basic needs. Economic confidence in Turkey fell to 86.4 in December from 89.5 in November, according to the Turkish Statistical Office. Any value below 100 points reflects social pessimism.
At present, Erdoğan, who lost his friend Trump’s support, has offered an olive branch to the EU, writing to French President Macron about video talks in the hope of slowly repairing relations with the EU.
But according to the latest Al Jazeera report, Turkey is in the process of “civil strife “, citing the deterioration of the domestic economic situation in Turkey, calling for early presidential and parliamentary elections.
Exchange rate collapse
Of the world’s worst performers by 2020, Turkish lira must have a name ——5.94 rira against the dollar at the beginning of the year, Tumbling down to about 7.5 Lila in December, The annual decline was 25%, Become the worst emerging market after Brazil! Early November 2020, the value of the Turkish lira fell to an all-time low: the dollar was 8.5 rials.
This is the eighth consecutive year in which the lira fell, and most of the annual decline in more than 10%. On 2 January 2012, the exchange rate of the lira against the United States dollar was 1.8944. But on 31 December 2020, the lira has fallen to 7.4392 against the dollar, The decline was more than 300% in eight years.
When a country’s currency depreciates sharply, the cost of imports increases, and it is hard to say that Turkish importers can not bear the current fall in the Turkish lira. In this case, some Turkish businessmen may choose to suspend the transaction, or even suspend the final payment, reject the goods.
And to intervene in the foreign exchange market, Turkey almost exhausted its foreign exchange reserves. But the result is that the lira is still depreciating, the actual effect is limited.
In the face of the currency crisis, Turkish President Recep Tayyip Erdogan once called on the public to buy the lira and start a “national campaign” to resist the “economic enemy “. If anyone puts dollars, euros or gold under the pillow, go to the bank and exchange them for Turkish lira. This is a national battle,” Erdoğan said.” We will not lose the economic war.”
But at a time when people tend to buy gold for value – Turks are snapping up gold at record rates. Despite falling for three consecutive months, gold has risen about 19% since 2020.
03 Trade protection
As a result, Turkey raised the “trade protection” stick. At the beginning of 2021, Turkey has thrown out a number of cases:
In fact, Turkey is a country with more cases of trade relief investigations on Chinese products, and in 2020, it will continue to investigate and impose tariffs on some products.
It is particularly important to note that the Turkish Customs has a strange rule that if the goods are returned to the port with the written consent of the consignee and the “notice of refusal to receive the goods “, the goods will become Turkish assets after entering the Turkish port. For long-staying ports or unextracted goods, the Customs will have the right to auction the goods without the owner and the original importer will be the first purchaser.
Certain provisions of the Turkish Customs have been used by undesirable domestic buyers for many years, and if exporters are not careful, they will be in a very passive position.
So recently exported to Turkey, please pay attention to the security of the payment!
Post time: Mar-04-2021