ITO Chairman Avdagiç Evaluates CBRT's FX Move: The 35% Rule Must Go

İstanbul Ticaret Odası (İTO) Chairman Şekib Avdagiç offered a positive perspective from the business world regarding the Central Bank of the Republic of Turkey's (CBRT) recent regulation on the exchange rate conversion mechanism, noting that this step towards increasing financial freedom was valuable.

Central Bank Move Against Export Restrictions

While Avdagiç stated that the measures taken allow for market opportunities, he emphasized that the real goal lies at a further point. Industry representatives are demanding a transition to a structure that completely frees companies' financial strategies, beyond the current regulation.

■The most critical expectation of the business world is the complete elimination of the 35% export sale obligation.

■The current support package is expected to alleviate the pressures on cash flow management for exporters.

■It is anticipated that the positive effects of policies on long-term sustainable growth and the current account deficit will become permanent.

Balance of Liquidity and Competitiveness

The CBRT's flexibility steps in exchange rate management indirectly affect market liquidity and exchange rate volatility. These regulations are changing risk management strategies by reflecting on the balance sheets of companies with high foreign trade volume.

Similar to the surprise indices in NFP and ISM data, we are monitoring how quickly such structural reforms normalize market expectations. Removing the 35% institutional constraint on exports will reduce volatility on the current account balance, causing macroeconomic stability indicators to diverge positively.