BUSINESS

Did the Fall of Turkish Lira endanger BH Exporters of Oil and Flour?

The fall of Turkish lira influenced BH economy as well. Therefore, exporters of oil and flour who have contracts with Turkey are now experiencing certain problems when it comes to their business operations.

BiH exports large quantities of meat to Turkey, and exports of oil and flour were increased in the last year as well. However, the financial problems of Turkey reflected on the economy of our country in some way.

“The best situation is when it comes to export of meat, because the arrangement that BiH signed with Turkey is in EUR, so it did not particularly influence the dynamics of exports to Turkey, nor the price. The problem is when it comes to oil and flour export,” said Minister of Foreign Trade and Economic Relations of BiH, Mirko Sarovic.

The largest exporter of edible oil from BiH to Turkey is the company Bimal from Brcko. Turkey is the most important export market for this BH company, and the fall of Turkish lira had large impact on the business operations of this company.

“I talked to people from Bimal. I cannot say they have any losses, but they are on the border. They want to continue the arrangement with Turkey because they believe in stabilization of Turkish lira and thus they continued delivering and exporting,” said Sarovic.

He also added that he will travel to Istanbul on Thursday, where he will discuss the issues and the new situation with the relevant Turkish minister, and the meeting should also be attended by Minister Rasim Ljajic from the Government of Serbia.

To recall, the US President Donald Trump introduced sanctions for certain Turkish ministers and introduced tariffs for certain products to Turkey due to political disagreements between Turkey and the United States. All of this had a negative effect on the value of the Turkish currency, which recorded a large fall in relation to USD in the last month.

(Source: S. H./Klix.ba)

 

 

 

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