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Turkey: Exporters are not required to convert FX revenues into lira

January 1, 2020 at 11:19 am

Liberia-flagged cargo vessel; ‘Songa Iridium’ is seen on the Bosphorus in Istanbul, Turkey on December 27, 2019 [İslam Yakut / Anadolu Agency]

Turkey has scrapped a requirement that exporters convert foreign exchange revenue into lira, according to an amended decree published on country’s Official Gazette, reports Reuters.

The decree, requiring exporters to convert at least 80% of their overseas revenue into lira was published on September 4, 2018, during the height of a currency crisis which wiped some 30% off the value of the Turkish currency.

The rule had been criticised by exporters because Turkey relies on raw materials from overseas for manufacturing, and imports cotton, scrap metal and chemicals priced in foreign currency.

Turkish companies are still required to bring revenue from export transactions into the country within 180 days of actual date of export, according to the amended decree, which was published late on Tuesday.

Turkey’s exports totalled $156.9 billion in January-November period last year, according to official statistics data. Turkey is a big exporter of textiles, clothing, machinery, steel and cars.