Textile sector demands exchange rate-inflation balance

Gamze Şener – ISTANBUL

As the picture of the new economic administration becomes clearer, the ready-made garment sector reiterated its call for solutions to long-standing problems.

According to the sector’s representatives, who, like many other sectors, are focusing on the balance between the exchange rate and inflation, access to financing, strengthening the perception of reliability and market diversity should be prioritized in the new period.

Ramazan Kaya, president of the Turkish Garment Manufacturers’ Association (TGSD), said that it is necessary to restore confidence and added that with the formation of a new economic model, the entry of direct investment into the country could also be on the agenda.

LC Waikiki Chairman Vahap Küçük emphasized that the priority is to create an environment of confidence in the economy.

“Then inflation and thirdly the stabilization of inflation and exchange rates. At least the uncertainty is over. There are great expectations from the new cabinet. I think it will also be important to make faster decisions in macroeconomic policy.”

Şeref Fayat, chairman of the Apparel and Ready-to-Wear Industry Assembly of the Turkish Union of Chambers and Commodity Exchanges (TOBB), said the apparel industry is a labor-intensive sector.

“Along with the slowdown in Europe, the pressure on the domestic exchange rate increased our costs,” he said.

“As the exchange rates were not sufficient for us, we started to lose serious markets. An economic policy should ensure that the exchange rate is at the same level as inflation, without suppressing it. The exchange rate should be allowed to reach to the level of 25-26 Turkish Liras to the dollar.”

Representatives of the ready-made clothing sector point out that they have been making losses for the last few months and that exports have been declining.

It is stated that the increase in the sector’s exports in May due to the base effect did not extend to the first five months and that the year-end data were revised in recent months.

While Fayat noted that credit taps should be opened for access to finance in the coming period, Kaya said, “Our main demand is for easier access to finance and support for short-time working to keep the wheels of industry turning.”