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

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