The CBRT's measures aim to increase the attractiveness of the lira while keeping foreign exchange demand under control and supporting reserve accumulation. However, this transition process brings with it the need for a new strategic positioning for exporters.
"Exporters' strategy must change: Time to focus on net profit and capital"
Jak Eskinazi, Coordinator President of the Aegean Exporters' Associations (EİB), stated: "As EİB, we believe that the extension of this support until the end of the year is important for exporters to plan and limit exchange rate losses. The steps taken by the Central Bank aim to support the real appreciation of the Turkish lira, limit the rise in exchange rates and increase reserves. However, exporters need to strike a good balance. Notably, both the FX conversion support (3%) and the obligation to sell 35% of export revenues to the CBRT are only valid until July 31, 2025. It is obvious that these short-term implementations make planning difficult. Moreover, the real effective exchange rate is expected to remain high. This will not contribute to the international competitiveness of exporters; on the contrary, it will put pressure on their profitability. The environment of a valuable TL and high interest rates persists. This picture causes costs to remain upward for manufacturing and exporting companies, thus increasing the pressure to keep prices."
President Eskinazi added, "As a result, exporters need to focus on their net profitability in the face of rising costs, develop strategies to increase capital profitability, and target operational efficiency and sustainability instead of gross sales. The period when big jumps in the exchange rate were expected is over. It is now crucial for companies to calculate their unit costs correctly, create their budgets in a disciplined manner, expect exchange rate increases below inflation, use financial instruments to minimize exchange rate risk, and take structural measures to reduce expenses. In addition, market dynamics have changed; six months is now considered a short term, while one year is considered a long term. Our companies need to act with this new time perspective. Freight costs have become an important obstacle in exports to the US. At this point, regional incentives such as special freight support for the USA should definitely be put on the agenda in order to protect the competitiveness of our exporters. As EİB, we will continue to guide our members in this transition process."
New Regulations from the CBRT: Steps for the Transition to TRY and Financial Stability
On May 3, 2025, the Central Bank of the Republic of Türkiye (CBRT) announced new macroprudential measures to encourage the transition to the Turkish lira, reduce exchange rate volatility and strengthen financial stability. The decisions cover various areas related to the banking system, deposit structure and export foreign exchange earnings.
The main regulations announced are as follows:
- Required reserve ratios for foreign currency deposits were raised by 200 basis points for all maturities.
- The reserve requirement ratio for FX-denominated repo transactions was raised by 400 basis points.
- Banks with a TRY deposit ratio below 60% will be expected to increase this ratio by at least 0.3 points every month.
- The interest rate applied to TL required reserves was raised from 84% to 86% of the CBRT weighted average funding cost.
The two main regulations for exporters are as follows:
- The rate for the sale of export proceeds to the Central Bank was increased from 25% to 35% and will be valid until July 31, 2025.
- The conversion support rate for companies that convert their foreign currency income into TL was increased from 2% to 3%, also valid until July 31, 2025
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