- December 17, 2021
- Posted by: Stratford Team
- Category: Business
In theory, Turkish businessman Vahit Yilmaz should be benefiting from the weak lira: orders from abroad are flooding in to Turkey’s $30bn textile and clothing industry after the lira’s crash slashed the cost of production in dollar terms.
But there was only a 50-50 chance that his wholesale clothing business would survive the next 12 months, he said. The cost of fabric, thread and other inputs, all priced in dollars, has shot up, and domestic producers such as Yilmaz in Merter, Istanbul’s ready-to-wear wholesale district, are bracing themselves for a turbulent spring season.
“Turkish textiles are all but free at this exchange rate,” said the 35-year-old. “Business was super when the dollar rose steadily. Now it’s dangerous.”
Recep Tayyip Erdogan has presided over a 50 per cent slide in the currency since the start of the year after he ordered the central bank to slash interest rates repeatedly despite rising inflation. On Thursday,…
