MUSIAD says Turkey should set up Forex stability fund

A Turkish businessmen's association said on Monday that a foreign exchange rate stability fund should be set up.

MUSIAD says Turkey should set up Forex stability fund

A Turkish businessmen's association said on Monday that a foreign exchange rate stability fund should be set up.

Turkey's Independent Industrialists' & Businessmen's Association (MUSIAD) released a report on Turkey's economy which said the decrease particularly in Euro could raise imports in the short term, and had a negative impact on foreign trade balance.

"An exchange rate stability fund should be set up as a measure against this imbalance," the report said.

In the report, MUSIAD suggested that measures to reduce unemployment should be taken, regulation and audit mechanisms should be separated, and cooperation between the business world and universities should be boosted.

The report also recommended the government not to ignore importance of African, Eurasian and Latin American markets, and to revise Turkey's growth model by implementing secondary reforms.

"Employment and productivity economy should be in line with each other, and new foreign trade strategy is promising," the report said.

In its report, MUSIAD said main reforms should be completed as soon as possible.

MUSIAD also underlined urgency of judicial reform, public management reform and a new pluralist and democratic constitution that prioritized human rights and freedoms.

Anti-crisis measures should focus on long-term transformation, instead of short-term demands, the association said.

In the report, MUSIAD referred to "payment in instalments" system in Turkey, which it thought incited borrowing with credit cards and created a risk.

MUSIAD suggested that sanctions should be imposed on enterprises that did not differentiate prices of goods and services paid in cash and paid in instalments, and that instalments should be limited.

The report highlighted the necessity of institutionalization process of the Small and Medium Scale Industry Development and Promotion Administration (KOSGEB) and Eximbank.

In the report, the association said Turkey should set prior industries in 2010, analyze the current situation of industries such as construction, machinery, agriculture, food, tourism, health, informatics, and mining.

The MUSIAD said the government was setting its priorities correctly, and attaching importance to public-private sector solidarity and cooperation with the non-governmental organizations.

"However, there are some problems in legalizing these efforts, and preparing regulations," the association said.

In the report, MUSIAD proposed the government and opposition parties to take more active steps to implement laws including Turkish Trade Code, and have common sense and cooperation.

MUSIAD forecasts the year-end growth around 4-5 percent, consumer inflation rate around 8-8.5 percent, current (accounts) deficit around 25-30 billion USD, and unemployment figure around 13 percent.


AA

Last Mod: 24 Mayıs 2010, 14:20
Add Comment