Highest Monthly Export Figures
At a meeting in Ankara yesterday, it was revealed that exports from Turkey surpassed $15 bn in January, with a sales increase of 2.5%, year on year, making it the highest monthly figure ever, whilst Imports were down 5.6% to amount to $18.1 billion,
The country’s Trade Minister, Ruhsar Pekcan, said “This figure shows that the growth process seen in the last quarter of last year continues in our exports,” Pekcan said.
The fall in imports, coupled with the rise in exports, has resulted in the foreign trade deficit ended up shrinking 32% on annual basis to over $3 billion.
Mr Pekcan continued ““The January figures indicate important and successful performance amid the ongoing uncertainty in the global economy, restrictions imposed by our trading partners due to the second wave of the coronavirus, and supply constraints such as delays in delivery times and increases in logistics costs,”
Depending on the pandemic, Pekcan said Turkey is optimistic about achieving the export target of $184 billion this year.
In other news, it was revealed that Turkish land vehicles manufacturer Katmerciler signed a 39.4 million-euro ($47.6 million, TL 342.2 million) export agreement with an undisclosed country for the sale of various types of armored vehicles tailored for different needs.
The deal marks the highest export value the company has ever achieved in a single agreement.
More good news for Turkey came yesterday as it was announced that the Turkish Lira had risen by 1.9%, it’s highest since August.
The lira has outpaced all emerging markets’ currencies, except China, after the Central Bank of the Republic of Turkey’s (CBRT) new chief, Naci Ağbal, hiked rates to 17% from 10.25% since November and pledged to tackle double-digit inflation.
Monday saw the lira jump to 7.1666 against the dollar by 6:30 p.m. local time – it’s best day so far this year, after gaining on seven of the last nine trading days.
Turkey’s benchmark stock index, the BIST 100, was up 1.29% to close Monday at 1,492.45 points.
It is thought that recent interest rate hikes, together with the Government’s promise of a new constitution and assurances of more market friendly trading, will result in better inflation rates, improved monetary credibility and a rebuilding of FX reserves.