Problems relating to Trade and Investment on Turkey

 
12. Exchange controls
Issue
Issue details
Requests
Reference
(1) Restricted Forward Booking of Foreign Exchange - Enterprises operating in Turkey may not make forward booking of foreign exchange with banks outside Turkey. - It is requested that GOT deregulates foreign exchange control.
(2) Rapid Exchange Fluctuations - Radical exchange fluctuations prevail. As it stands, Member firm's subsidiary (MFS) benefits from exchange gain on a direct export transaction in yen. Nevertheless, negotiation for raise in price is difficult. In a transaction with its parent company, the prevailing Yen depreciation enables MFS to offer special prices to its customers. However, MFS runs on a thin margin, so that if the exchange rate swings toward appreciation of Yen, it will instantly show operational loss: such is the severity of the fluctuation band. - It is requested that GOP takes step to:
-- stablise foreign exchange fluctuations, and
-- holds the fluctuation band within a few percents in 6-months.

<<BACK