MÜSİAD President Özdemir: Dollar Should Not Fall Below 45 Lira by Year-End

Burhan Özdemir, President of the Independent Industrialists and Businessmen’s Association (MÜSİAD), stated during an appearance on CNBC-e’s “Makro Gündem” program that the dollar exchange rate should not fall below 45 Turkish Lira by the end of the year, particularly from an exporter’s perspective.

Özdemir emphasized that the current situation was not favorable for exporters and called for more flexibility in the exchange rate policy.

He pointed out that while current market expectations placed the exchange rate between 43 and 45 lira, a level below 45 would be detrimental to exporters. According to Özdemir, a more competitive exchange rate is necessary given the real policy interest rate. He added that this issue now extended beyond exporters, also impacting domestic producers who sell within the country. The rise in the import quantity index indicates broader implications for the economy, he noted.

On interest rates, Özdemir said that a rate cut in July would be appropriate, suggesting a reduction of 350 to 400 basis points. He warned that delaying the cut until September would be too late, stressing the urgency of monetary policy adjustments to support the real economy.