The dramatic rise in the U.S. dollar against other currencies has had a huge negative effect over the Turkey’s exports. Under normal conditions, the loss of the Turkish Lira’s value against the dollar would be expected to be good for Turkey’s exports, but it is not. As Turkey mainly makes its imports on a dollar basis and its exports on a euro basis (to its largest market, the European Union), the plummeting value of the euro against the dollar has hit Turkey’s exports.
Turkey’s manufacturing activities are mainly based on imported raw materials and semi-products, which are bought on the more expensive dollar, but are sold on the cheaper euro abroad.
According to data from the Turkish Statistics Institute, Turkey conducted around $157.6 billion in exports in 2014. But according to temporary data from the Customs and Trade Ministry, the country’s exports fell 8.5 percent to $143.9 billion in 2015.
Elitaş said the continuing plunge in oil and other commodity prices also negatively affected Turkey’s exports in 2015.