ISTANBUL, June 19 (Xinhua) -- Türkiye needs to increase production on a sectoral basis to achieve its export targets, said the head of the Turkish Exporters Assembly (TIM) on Monday.
Speaking to daily Dunya, Mustafa Gultepe noted that even with an exchange rate of 35 Turkish liras to the U.S. dollar, reaching the export target of 500 billion dollars in today's conditions would be difficult.
As Turkish exporters conduct their business in dollars, the appreciation of the dollar against the Turkish lira is to their advantage.
"First of all, we need to increase production on a sectoral basis," Gultepe was quoted as saying by Dunya. Urging the sectors to increase capacity and reduce prices, he said capacity utilization in the country was currently at 60 percent.
Gultepe stated that the prices of Turkish products are 20 to 40 percent higher than those of Far East countries. "I am not saying that we should compete on price, but even if we would be 5-10 percent more expensive, European markets will prefer us, and orders will return as of July," he added.
The Turkish currency is trading at 23.60 liras against the greenback on Monday afternoon, losing over 25 percent of its value since the beginning of this year.
In the export strategy formulated in 2012, Türkiye set an export target of 500 billion U.S. dollars for 2023, the 100th anniversary of the founding of the republic.
Turkish President Recep Tayyip Erdogan named Mehmet Simsek as the treasury and finance minister after winning the elections in May. The new minister has hinted at a return to orthodox policies, including rate hikes.
The Turkish Central Bank, meanwhile, is expected to meet for a possible rate hike on Thursday under the leadership of Hafize Gaye Erkan, the new governor of Türkiye's central bank. ■
