Turkey has already suffered from a collapsing currency and inflation over the past two years.

In 2020, a new pandemic dealt Turkey another blow, pushing it into a bottomless recession.Turkey’s currency, the lira, is collapsing at a record pace and its foreign exchange reserves are bottoming out.
In this case, Turkey has raised a big stick called “trade protection”.

recession

Turkey’s economy has been in a long-term recession since the second half of 2018, not to mention a new crown in 2020 that will make its fragile economy worse.

In September 2020, Moody’s downgraded Turkey’s sovereign credit rating from B1 to B2 (both junk), citing balance of payments risks, structural challenges to the economy, and financial bubbles as a result of the country’s declining foreign exchange reserves.

By the third quarter of 2020, the Turkish economy showed a trend of recovery.However, according to the latest data from the Turkish Statistics Office (TUIK), the consumer price index in Turkey in December 2020 increased by 1.25% from November and 14.6% from the same period in 2019.

Miscellaneous goods and services, transport, food and non-alcoholic beverages saw the largest price increases of 28.12%, 21.12% and 20.61%, respectively, compared with the same period in 2019.
A photo of a Turkish man getting down on one knee and offering his crush a bucket of cooking oil instead of an engagement ring has been circulating on Twitter.

Turkey’s president, Recep Tayyip Erdogan, has been tough on foreign policy but weak on the domestic economy.

In mid-December, Mr Erdogan announced rescue packages to help small and medium-sized businesses and traders tide over the next three months.But economists say the rescue measures are too late and too small to make much of a dent in Turkey’s battered economy.

According to a recent Metropoll report, 25 percent of Turkish respondents say they do not have access to even basic needs.Economic sentiment fell to 86.4 points in December from 89.5 points in November, according to Turkey’s statistics office.Any score below 100 reflects the pessimistic mood of society.

Now Erdogan, who lost his friend Trump’s support, has offered an olive branch to the European Union, writing to French President Emmanuel Macron and setting up a video meeting in hopes of slowly mending relations with the bloc.

However, according to a recent report by Al Jazeera, “civil unrest” is taking place in Turkey, and opposition parties are planning a “coup d ‘etat” and calling for early presidential and parliamentary elections under the pretext of the deteriorating economic situation in Turkey.The former Turkish Prime Minister Ahmet Davutoglu has warned that President Recep Tayyip Erdogan’s position may be unstable following a number of recent threats and attempts to incite a coup, and that the country could face the risk of another military coup.

After a failed military coup on July 15, 2016, in which tanks were sent into the streets, Erdogan took decisive action and carried out a “purge” within the army.

Currency collapse

The Turkish lira must have a name among the world’s worst-performing currencies in 2020 — from 5.94 to the dollar at the start of the year to around 7.5 in December, a 25 per cent fall for the year, making it the worst emerging market after Brazil.In early November 2020, the value of the Turkish lira fell to an all-time low of 8.5 lira to the dollar.

It was the eighth year in a row that the lira had fallen, with most annual declines of more than 10%.On January 2, 2012, the lira traded at 1.8944 to the US dollar;But on December 31, 2020, the exchange rate of the lira against the US dollar had fallen to 7.4392, a decline of more than 300% in eight years.

We who do foreign trade should know that when a country’s currency depreciates significantly, the cost of imports will increase accordingly. It is difficult to say that the Turkish importers can still bear the fall of the Turkish lira.Under such circumstances, some Turkish traders may choose to suspend trading, or even suspend balance payment payments and refuse to accept goods.

To intervene in the currency markets, Turkey has almost exhausted its foreign exchange reserves.But as a result, the lira has continued to depreciate, with limited practical effect.

Faced with the currency crisis, Turkish President Recep Tayyip Erdogan has called for people to buy lira to launch a “national battle” against “economic enemies.”"If anyone has dollars, euros or gold under their pillows, go to the bank and exchange them for Turkish lira.This is a national battle, “Erdogan said.” We will not lose the economic war.”

But this is a time when people tend to buy gold as a hedge — Turks are snapping up bullion at a record pace.While gold has fallen for three straight months, it is still up about 19% since 2020.
Trade protection

Thus, Turkey, troubled at home and invaded abroad, raised the big stick of “trade protection”.

2021 has just begun, and Turkey has already thrown out a number of cases:

As a matter of fact, Turkey is a country that has initiated a lot of trade remedy investigations against Chinese products in the past. In 2020, Turkey will continue to initiate investigations and impose tariffs on some products.

Especially is important to note that the provisions of the Turkish customs has a wonderful work, after the goods to the port if returned to the consignee agreed to in writing and show “refused to receiving notification”, after the goods into the Turkish ports as assets, Turkey for long port or unmanned extraction of goods, the customs will be without the owner’s processing, has the right to auction the goods, the importer for the first buyer at this time.

Certain provisions of Turkish customs have been used for many years by undesirable domestic buyers, and if exporters are not careful, they will be in a very passive position.
Therefore, please be sure to pay attention to the security of payment for the recent export to Turkey!