January 20, 2022

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Devaluation of Turkish Currency a Threat to Iran’s Exports

Devaluation of Turkish Currency a Threat to Iran’s Exports
Devaluation of Turkish Currency a Threat to Iran’s Exports

Head of Iran’s Export Confederation Mohammad Lahooti says current devaluation of Turkey’s national currency lira has boosted the country’s exports and it can affect Iran’s important export markets like Iraq and Russia and it is a serious threat.

TEHRAN (Iran News) –  Devaluation of Turkish Currency a Threat to Iran’s Exports. Head of Iran’s Export Confederation Mohammad Lahooti says current devaluation of Turkey’s national currency lira has boosted the country’s exports and it can affect Iran’s important export markets like Iraq and Russia and it is a serious threat.

Lahooti said that devaluation of lira can help Turkey’s exports to increase, and since Turkish exporters are supported by the Turkish government, the impact of devaluation of lira for exports will be doubled and this can definitely help Turkey to overshadow Iran’s export markets in countries like Iraq, Russia and the CIS states.

He said that one of Iran’s toughest and serious rivals in exports especially in Iraq, Afghanistan and CIS countries except Armenia is Turkey and due to massive investment in industrial and logistical sectors in Turkey as well as the final product exports of this country has always been the main rival of Iranian exporters and in some cases they have overshadowed Iran’s export markets.

He went on to say that since Turkey’s policy is an export-centered one and its required infrastructures in the banking, transportation, international relations and packing are different from Iran, the devaluation of lira can definitely boost Turkey’s exports because Turkish exporters are supported by the government.

Lahooti reiterated that Iran’s Trade Promotion Organization can thwart this impact by giving export incentives to exporters in the markets where Turkey is Iran’s main rival. He said Iran’s agro and food stuff can be affected more by this development in Turkey as Turkey is the main rival of Iran in exports of agro and food products in the region.

The Turkish lira plunged as much as 5.6% to a record low against the dollar on Thursday after the central bank slashed its policy rate in line with an unorthodox economic program set out by President Tayyip Erdogan.

The lira touched a low of 15.689 after the move, before trimming losses to 15.58

Original News : https://irannewsdaily.com/2021/12/devaluation-of-turkish-currency-a-threat-to-irans-exports/

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