COMPLEXCOUNTRIES
Global Treasury intelligence
Treasury & FX in Turkey
Treasury & FX in Turkey
Call date: 12th Dec 2018
In this call, members shared their approaches to Treasury & FX in Turkey, including:
- Currency issues
- Financing
- Hedging
- Credit insurance
The call was chaired by Arnaud Francq whose key takeaways are listed below.
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Key Takeaways
- A number of participants have local distribution but import products from outside Turkey, this creates a mismatch between sourcing in EUR/USD and sale in TRY causing currency exposure.
- Local financing is becoming very expensive, some companies are focusing on reducing local borrowing/debt as a matter of priority.
- Hedging is becoming very expensive, in some cases, it might be easier to limit the currency exposure of the local entity and centralize hedging at HQ level.
- Currency volatility is creating increased challenges for reporting (mark to market) .
- As the economic conditions are becoming more challenging, some participants observed some lengthening of payment terms.
- Increasing limits for local credit insurance is becoming more and more difficult
Premium members can and subscribers can download the full report here.
