Home / Knowledge / News / Textiles / Depreciating Lira does not enthuse exporters

Depreciating Lira does not enthuse exporters

25
Oct '08
Turkish textile and garment exporters, the major foreign currency earners for the country have long been complaining of the overvalued Turkish Lira. But since the last few days dollar and euro, both have been appreciating in value, but not to the satisfaction of these exporters.

The dollar has gained 29 percent and the euro 19 percent in the last fortnight. The exporters are lamenting that now they are unable to quote competitive rates to foreign buyers. The exporters are enticing their buyers who are delaying their orders due to the rise in exchange rates through price reductions or exchange rate guarantees.

Exporters are also worried about a slowdown in demand due to the depreciation and a possible rise in lending rates. They also warn that it would create more problems in the future if exporters quote their prices based on current exchange rates considering the volatility in the markets.

The exporters are facing pressures from their clients to cut prices due to the twin factors of drop in crude oil prices and the appreciation of the dollar and euro against the Turkish Lira. But experts aver that rise in exchange rates in the current scenario will not provide long term profits as lending rates are also expected to rise.

They say that they welcome the gain which is a boon for exporters, but since the change has come about due to the current economic global crisis, it is vey risky. The rise in the exchange rate though has made things difficult for those manufacturers and exporters who are dependent on imports for their raw material requirements.

Imports have become costlier, but at the same time prices of key inputs like petrochemicals have also seen a free fall on back of falling crude prices which has helped in balancing costs to a large extent.

The textile sector delivered a growth of 11.79 percent in the first seven months of 2008 corresponding to the same period in 2007. Exports from the industry grew from US $13.85 billion in Jan-July 2007 to $15.49 billion in the comparable period of 2008.

The sector is also responsible for contributing singlehandedly nearly 22 percent of all export revenues generated from the industrial sector for the country.

Fibre2fashion News Desk - India


Interviews View All

Nitin Bhatia, Trend Arrest

Nitin Bhatia
Trend Arrest

Setting up a brand for online selling is easy, but running the brand is not

Top executives, Textile industry

Top executives
Textile industry

Sustainable fashion is also ‘slow fashion’

Akash Khetan, Narayan Tex Fab

Akash Khetan
Narayan Tex Fab

I find it hard to find professionals in Surat

Deepak Mundra,

Deepak Mundra

Surat-based Madhusudan Group is a vertically integrated textile...

Kuldeep Pareek,

Kuldeep Pareek

Italian company Schoch Reeds has been producing high-quality weaving reeds ...

Paolo Crespi,

Paolo Crespi

For.Tex is an Italy-based leading producer of dyes and thickeners, and is...

Ian Russell, Pireta

Ian Russell
Pireta

UK-based Pireta has developed a unique free-form process to add durable,...

Pierre Wiertz, EDANA

Pierre Wiertz
EDANA

Pierre Wiertz talks about the vast world of sustainable nonwovens and...

Alfonso Marra, Klopman

Alfonso Marra
Klopman

It was in 1968 that Klopman introduced the concept of poly/cotton workwear ...

Amiben Shroff, Shrujan

Amiben Shroff
Shrujan

From its modest beginning in the late 1960s, Shrujan has grown into a...

Sweta Tantia, Tahweave & Garo

Sweta Tantia
Tahweave & Garo

Designer Sweta Tantia owns Garo, a couture indutva or ethnicwear brand,...

Anjali Bhaskar, Samatvam

Anjali Bhaskar
Samatvam

Anjali Bhaskar has an experience of 12 years in the fashion industry. She...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


October 2019

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search