Big Increase Expected in the New Year in the Clothing Industry

In our country, citizens and almost all sectors have been around for a long time. increases in exchange ratesis trying to survive in the grip of fluctuations. Although this problem is mostly seen with the price increases reflected in the technology and food sector, in fact, not all business lines and sectors can cope with high costs. Citizens are also directly affected by this situation.

With the TL losing value like a car going downhill and with the gear in neutral, the demand for TL has also decreased tremendously both internationally and within the country. President of Turkish Clothing Manufacturers’ Association (TGSD), Ramazan Kaya stated that large fluctuations in exchange rates cause a return to foreign currency, and that companies are not responsible for payments. TL not to be sent conveyed what he wanted.

There will be a 50 percent increase in the new year

Stocks are the biggest contributor to inflation in October, with a contribution of around 7.56 percent. in the clothing industryPayments made in TL have turned into dollars as of last week. Raw material producing companies stated that due to the constant changes in exchange rates, all collections will be made in dollars in the next period. The striking development in the sector is related to the increase. Industry officials, who said that they were asked to pay 1-2 months in advance for raw material purchases, said that since January, due to these processes, the consumer at least 50% raise He said it will reflect.

Making a statement on the subject, TGSD President Ramazan Kaya said:This was especially the case with the jump in foreign exchange at the beginning of this week. Firms were selling in foreign currency. Payments were made by converting from the MB exchange rate to TL. Or they were selling in foreign currency, or we used to send TL checks to the foreign currency account in forward purchases and calculate the exchange rate difference. Now they say, ‘We sell in foreign currency, we want foreign currency in return, don’t send TL.’ Because there was volatility during the day and the TL check we sent was not an answer to this, we are completely in foreign currency sales at the moment. they want currency or they want a model with a foreign currency check payment. After the New Year, a 50 percent increase will be reflected on the labels at least on average. This will trigger inflation.” he said.