The Treasurer’s Guide to Trade Finance

Turkey

Economic and trade overview

Key figures

Economy 2011 Trade 2011 (USD billion)

GDP (USD) 775 bn Goods Exports 143

GDP per capita (USD) 10,524 Imports 232

GDP volume growth (year-on-year) + 8.5% Net – 89

Population 73.64m Services Exports 39

MMR (year average) 2.99% Imports 21

Exchange rate TRY / USD (year average) 1.6750 Net + 18

BoP (goods, services & income) as % of GDP – 10.2% Source: IFS, IMF, January 2013

International/Regional memberships

Economic Cooperation Organisation
(ECO): founding member since 1985.

International Monetary Fund (IMF):
since 11 March 1947.

World Trade Organization (WTO):
since 26 March1995.

Government trade policy

ƒ Turkey has a customs union agreement with
the EU and thus implements the EU customs
code (ec.europa.eu/trade).

ƒ As such, import tariffs are due on EU
agricultural products only.

ƒ Turkey has in place free trade agreements

with EFTA (European Free Trade

Association) member states and 18 further

countries: Albania, Bosnia and Herzegovina,

Chile, Croatia, Egypt, Georgia, Israel, Jordan,

Lebanon, Macedonia, Mauritius, Montenegro,

Morocco, Palestine (Palestinian Authority),

Serbia, South Korea, Syria and Tunisia.

ƒ Turkey belongs to the ECO, which aims

to create a free trade area among its ten

member states by 2015.

ƒ National export credit insurance provider:

Export Credit Bank of Turkey (Türk

Eximbank — http://www.eximbank.gov.tr). The

wholly state-owned Türk Eximbank also

provides state-supported export finance.

ƒ Turkey currently has 19 free trade zones.

Currency and exchange controls

Official currency: Turkish lira (TRY).

Exchange rate arrangement: free floating.

The Central Bank of the Republic of Turkey
(www.tcmb.gov.tr) and Turkish Treasury
(www.treasury.gov.tr) manage the country’s
exchange controls.

ƒ Commodity credits from residents to
non-residents exceeding two years for the
export of nondurable goods and exceeding
five years for the export of other goods are
subject to restrictions.

ƒ Non-residents are obliged to register
securities to be issued or sold in Turkey
with the Capital Market Board. Furthermore,

residents are obliged to register all securities

to be issued or sold overseas.

Bank accounts

Permission to hold currency accounts

Within

Turkey

Outside

Turkey

TRYForeign currency TRYForeign currency

Resident

company ✔ ✔ ✔ ✔

Non-resident

company ✔ ✔ ✔ N/A