Hurriyet.com.tr Economy Service
Created on June 8, 2024 at 15:02
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President Recep Tayyip Erdogan spoke at the 31st Ordinary Plenary Session of the TİM, held at the Halic Congress Center. “I have some good news to share with you. We have reduced the foreign currency exchange requirement for exporters from 40 percent to 30 percent. This regulation will come into effect from Monday,” Erdogan said.
President Erdogan’s remarks are as follows:
In our culture, talent is a subject of compliments. How can the people of our country not be proud of the success that is manifested by the numbers? I would like to thank 150,000 exporters who deliver products with the stamp “Made in Turkey” to the world. I have always been involved in your work. We have kept the door wide open for you. We have dealt with all your problems individually and tried to find practical solutions to the problems. You worked, and we helped you. We made the work easier for you, because you exported. Your requests are on the agenda at every meeting with heads of state and government who visit our country. We have built commercial bridges between our country and the rest of the world through agreements, forums and fairs. We connected with you our country, which has brought exports of $36 billion to today’s level. What in 2002 took a week to do, can now be exported in a day. There is no state left that does not export. We have enough exporters to be in the top 1,000 exporters in 48 states. Keyboard economists may not recognize these things, ivory tower judges may not understand them.
We look at you, not what others say, and we walk with you. I hope we can continue to build more camaraderie. I and my close colleagues are your supporters. Our employees are also people who distance themselves from the business world and the real sector, but we do not hesitate to do so respectfully. Exports are the locomotives of the Turkish economy. Türkye is a country that must grow by creating jobs through production, not consumption. You offer an opportunity to promote Turkey. We cannot tolerate anyone who would waste or sabotage these efforts.
“Our exports have set records.”
Not only we, but also the figures clearly tell the story of Turkey’s success in foreign trade. 2023 was a good year for exports. We ended 2023 with a total export value of $355 billion, including $255.4 billion in goods exports and $101.7 billion in services exports. Last year, we broke records in the history of the Republic. With exports in May at $24.1 billion, we recorded the highest export value in May ever. In May, our exports reached an annualized value of $260.1 billion, a new record high. The downward trend in imports continued in May. Due to the increase in exports and the decrease in imports, the foreign trade deficit in May 2024 decreased by 47.8%. In the first five months, merchandise exports achieved a net increase of $4.6 billion. The improvement in our country’s foreign trade deficit continues. Our country’s foreign trade deficit decreased by $19.2 billion.
The improvement of the current account deficit, the improvement of foreign trade and the recovery of trading partners will far exceed the medium-term targets. The reduction in the current account deficit will have a positive impact on the accumulation of foreign exchange reserves. We will steadily increase our exports of products to $267 billion and our exports of services to $110 billion by the end of 2024. We will succeed together with you, as we have done for the past 21 years. The increase in exports and the support we provide to exporters is giving Turkey a different momentum.
“We have increased the credit limit for RE discounts.”
The Ministry of Finance and the Central Bank are working on various modalities to improve the financing needs of exporters. With its 70 billion lira capital structure, the Eximbank has the opportunity to provide further support to exporters. It has increased the daily limit for rediscounted loans to 3 billion liras.
Good news regarding currency exchange obligations
I have some good news to share with you: we have reduced the foreign currency exchange requirement for exporters from 40 percent to 30 percent, effective from Monday.
Despite the violent conflicts in our region and the damage caused by the February 6 earthquake, we are navigating the rough seas that the global economy is experiencing well. We have shared with you our medium-term plan and economic roadmap with the 12th Development Plan that we have prepared. We did not make promises to win elections. Those who made false promises on the electoral stage are now hanging on and looking for ways to divert the attention of the people instead of keeping their promises. We see that those who make judgments about rights and laws are writing books of nepotism. We have never resorted to any unethical means politically. We are in politics to serve the country and the nation. If we pay the price, we are concerned that we will not make the people pay the price. Our priority is to save this country from the cost of living problem. We will implement harmonious policies to control inflation. The first year of our economics program was a transition year and we have been able to complete this period safely as expected. We believe that the most difficult period of inflation is over. On the growth front, thankfully interest rates are trending positive. Despite the earthquake, we recorded a growth of 4.5%. Our national income has exceeded $1 trillion for the first time at current prices. The Turkish economy is ranked 17th in the world and 11th in purchasing power.
“Our program is working.”
The increase in machinery and equipment investment has continued for 18 quarters. We expect balanced growth of nearly 4% in 2024, with net external demand contributing positively. The Turkish economy is making steady progress toward its goals, and Turkey’s outlook has improved significantly. Our programs are paying off. The Center’s total reserves increased by $45.2 billion to $143.6 billion.
“Turkiye is the protagonist of the new era”
I believe that international direct investment will make a strong comeback. We will waste no time in working towards further improving the investment climate. The CDS premium fell to 266 basis points. We will also carefully follow the steps of credit rating agencies in upgrading their ratings and outlooks. All entrepreneurs will have free access to long-term and low-interest resources. At the end of this process, the Turkish economy will rise to a completely different level. When we get rid of the uncertainties that negatively affect the whole world, including developed countries, Türkiye will become the protagonist of a new era. Let’s not worry about our main business, but focus on achieving our export goals. We will never leave the square to ambitious people who negatively manipulate our citizens on the streets. I hope that in the future, our economic management will be communicated more often to the business community, especially exporters.
