(zaman.com) - While exporters have benefited from high foreign exchange rates, importers have been put in a difficult spot.
Foreign Trade Undersecretary Tuncer Kayalar said, If we can reach our target of $84 billion, it will encourage us to pass the psychological barrier of $100 billion in 2007.
While the rising exchange rate led to an increase in interest rates and inflation, it also served the import dealers, reports Trend.
The increase in the values of the euro and US dollar boosted Turkish exports by 28.4 percent, taking export rates to a record value and changing forecasts for 2007.
Kayalar said exports would exceed $100 billion next year. However, he warned importers that the import rates would decline. .
Kayalar reiterated that foreign importers may exert pressure on Turkish companies not to increase the profit margins to keep importing at former prices and he warned the exporters not to throw their goods into the domestic market because of these foreign pressure.
Kayalar added that exchange rates should recover as soon as possible: We anticipate that exchange rates recovery of within their current values will possibly reduce the import volume, thus the foreign trade deficit will be settled to a large extent.
In his interview with Zaman, Kayalar talked about the export, import and foreign trade figures following the recent fluctuations in the markets.
Kayalar pointed out that the export volume in June broke a new record with a 28.4 percent increase and 12-month foreign trade figures reached $78 billion.
He anticipated the increases would continue in the second half of the year and it was possible to reach $83-84 billion.
Kayalar said imports in 2006 would possibly reach $126-128 billion and export coverage import rates would reach 63-65 percent.
He added that the debated exchange rates would have an important effect on foreign trade balance and achieving the target of $84 billion would encourage them to pass the psychological barrier of $100 billion in 2007.
The program, which began with economical partnerships with neighbor countries, contributes millions of dollars to Turkish exports.
Kayalar said the trade volume with those countries grew from $20 to $60 billion in five years and the $5 billion in trade with African countries grew to $10 billion in two years.
All these developments fill us with great enthusiasm, Kayalar added.
Kayalar: 1-digit Inflation for July
Tuncer Kayalar anticipates the inflation figures that reached double digits in June will be reduced to one digit by consumer prices.
Kayalar said producers would revise their prices and added: I believe Turkey is on the right path. We can come to a very good point in this way.