Press Release October 11, 2026
PLASFED President Ömer Karadeniz:
“FOREIGN EXCHANGE CONVERSION SUPPORT MUST BE STRENGTHENED
FOR EXPORTERS' GLOBAL COMPETITIVENESS”
Stating that Turkey must strengthen and make its foreign exchange conversion support more holistic in order to protect exporters' global competitiveness, PLASFED Chairman of the Board Ömer Karadeniz pointed out that China supports its exporters not only through exchange rate policy, but also with different tools such as exchange rate risk management, access to finance, tax rebates, and export insurance, and said, “As Turkey, we can also establish a more comprehensive support model that will reduce the cost and exchange rate pressure on our exporters.”
Stating that Turkish industrialists have recently been facing increasing costs and global competitive pressure, Plastics Industrialists Federation Chairman of the Board Ömer Karadeniz said that mechanisms encouraging the conversion of foreign exchange earnings into Turkish lira for the sustainability of exports should also take into account the competitive power of the exporter.
Recalling that the foreign exchange conversion support started to be implemented at a rate of 2 percent in 2023 and was temporarily increased to 3 percent in May 2025, Karadeniz stated that a new period in the application began as of October 1, 2026. Pointing out that with the CBRT's new regulation, the support is linked to foreign exchange position, value-added, and supplier companies producing for export, Karadeniz noted that while expanding the scope of the new structure is important, the effectiveness of the support should be further increased in terms of the global competitive conditions of the exporter.
“Exporters struggle not only with exchange rates, but also with cost pressure”
Stating that Turkey's exporter industrialists are affected not only by exchange rate movements, but also by high production costs, financing expenses, and intense price competition in global markets, Karadeniz spoke as follows:
“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 our exporters' competitive power. The support provided in the conversion of foreign exchange earnings into TL is also an important tool supporting the exporter's competitive power in this respect. Our expectation is that the foreign exchange conversion support will be raised to a level that will more effectively support the exporter's competitive power.”
“China's approach provides us with an important example”
Stating that different policy tools are used together to support exporters in global trade, Karadeniz said that China's practices are remarkable in this respect.
Stating that the use of foreign currency derivatives and other financial tools for exporters to manage exchange rate risk has existed for a long time in China and is even more widespread today, Karadeniz expressed that the ability of businesses to price and pay in RMB also contributes to the management of exchange rate risk. He also noted that tools such as export tax rebates, export loans, and export credit insurance are used in China to reduce the financial burden and risks of exporters.
Karadeniz said, “We are not talking about directly copying a single support mechanism applied by China to Turkey here. What is important is that different tools can be used together and effectively to protect the exporter's competitive power. China's approach offers us an important example in this regard.”
“We can create a more holistic export support model”
Emphasizing that Turkey also needs a more holistic support approach that addresses the cost and exchange rate risks faced by exporters together, Karadeniz continued his words as follows:
“Focusing only on a single support item is not enough for our exporters to maintain their competitive power in global markets. In addition to foreign exchange conversion support, access to cost-effective finance, the spread of tools to protect against exchange rate risk, the strengthening of export credit and insurance mechanisms, and the reduction of cost pressure on the exporter should be evaluated together.”
Drawing attention to the importance of industrialists having easier and lower-cost access to financial tools in order to manage exchange rate risk, Karadeniz stated, “Our exporters need a financial infrastructure where they can manage exchange rate risk in order to foresee the future, give prices, and take long-term orders. In addition, the costs of access to finance need to be brought to competitive levels.”
For more information and contact:
Nilgün Özdemir / [email protected] / 0532 724 95 90
This content has been translated using artificial intelligence technology.