PLASFED: “Foreign Exchange Conversion Support Should Be Strengthened for Exporters' Global Competitiveness”

Plastik Sanayicileri Federasyonu (PLASFED) Chairman of the Board of Directors Ömer Karadeniz said that in order for Türkiye's exporters to maintain their global competitiveness, foreign exchange conversion support needs to be given a stronger and more holistic structure. Noting that China supports its exporters not only through exchange rate policies but also through various tools such as access to financing, tax refunds, and export insurance, Karadeniz stated that a comprehensive support model that would reduce cost and exchange rate pressure could also be created in Türkiye.

Stating that Turkish industrialists are facing increasing production costs and global competitive pressure, Ömer Karadeniz emphasized that the mechanisms encouraging the conversion of foreign exchange revenues into Turkish lira should also take into account the competitiveness of exporters in terms of the sustainability of exports.

Recalling that foreign exchange conversion support began to be implemented at a rate of 2 percent in 2023, and was temporarily raised to 3 percent in May 2025, Karadeniz stated that a new period in the implementation began as of October 1, 2026. Noting that with the new regulation of the Central Bank of the Republic of Türkiye (TCMB), the support has been linked to foreign exchange position, value added, and supplier companies producing for export, Karadeniz said that they find the expansion of scope important, but that the effectiveness of the support needs to be increased.

“Exporters are struggling not only with exchange rates but also with cost pressure”

Stating that exporting industrialists are affected not only by movements in exchange rates but also by high production costs, financing expenses, and intense price competition in global markets, Karadeniz said that foreign exchange conversion support is one of the important tools supporting competitiveness.

Karadeniz used the following statements in his assessment on the matter:

“Today, our exporters compete in global markets not only with the quality of their products but also with their costs. Numerous cost items, from energy to labor, from financing to raw materials, directly affect the competitiveness of our exporters. In this respect, the support provided for the conversion of foreign exchange revenue into TRY is also an important tool supporting the competitiveness of exporters. Our expectation is that foreign exchange conversion support will be raised to a level that will more effectively support the competitiveness of exporters.”

China's export support policies cited as an example

Touching on the importance of using different policy tools together to support exporters in global trade, Karadeniz said that China's practices are noteworthy in this respect.

Stating that foreign exchange derivatives and other financial instruments have long been used in China to enable exporters to manage exchange rate risk, and that these practices have been widely adopted, Karadeniz said that the ability of businesses to price and make payments in Chinese yuan (RMB) also contributes to the management of exchange rate risk.

Noting that practices such as export tax refunds, export credits, and export credit insurance are also used in China to reduce the financial burdens and risks of exporters, Karadeniz stated that these tools could also be considered for Türkiye.

Karadeniz said, “Here we are not talking about directly copying a single support mechanism applied by China to Türkiye. What matters is that different tools can be used together and effectively to protect the competitiveness of exporters. China's approach offers us an important example in this respect.”

“We can create a more holistic export support model”

Emphasizing that Türkiye needs a more comprehensive support approach that addresses both the cost and exchange rate risks faced by exporters together, Karadeniz stated that foreign exchange conversion support alone would not be sufficient.

Karadeniz said that in order to protect the competitiveness of exporters, access to affordable financing, the widespread adoption of exchange rate risk hedging tools, the strengthening of export credit and insurance mechanisms, and the reduction of cost pressure need to be considered together.

Also drawing attention to the importance of industrialists having easier and lower-cost access to financial instruments in order to manage exchange rate risk, Karadeniz concluded his remarks as follows:

“In order for our exporters to be able to see ahead, offer prices, and take long-term orders, they need a financial infrastructure through which they can manage exchange rate risk. In addition, the costs of accessing financing need to be brought down to competitive levels.”