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Expert explains why Turkish products in Baku don't fall in price amid devaluation of lira

Economy Materials 20 October 2021 09:37 (UTC +04:00)
Expert explains why Turkish products in Baku don't fall in price amid devaluation of lira

BAKU, Azerbaijan, Oct. 20

By Farid Zorhabov - Trend:

The current official exchange rate of the Turkish lira to the Azerbaijani manat is 1 TRY/0.18 AZN on average, an Azerbaijani expert and economist Khalid Karimli told Trend.

Despite the fact that the rate of the Turkish lira continues to decline, Turkish-made goods in Baku are not getting cheaper.

“This is due to the fact that Turkish companies carry out payments for export-import transactions in dollars and euros,” the expert explained.

“As the Turkish Lira devaluates, companies in Turkey raise the price of their products. Most of the goods sold in Azerbaijan were purchased at the previous higher rate,” Karimli noted.

“However, despite this, sellers in Azerbaijan are trying to sell goods at inflated prices. Due to the coronavirus pandemic, the income of importers of Turkish products has decreased significantly, while expenses have increased. They do not have the financial resources in circulation that they had before, and therefore they do not reduce the prices,” said Karimli.

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