Türkiye’s foreign trade in local currency rising

Foreign trade transactions made in Turkish Liras have been on the rise, reaching 34.2 billion liras in August, data from the Trade Ministry show.

Last month, exports in local currency grew 109 percent on an annual basis to 10.4 billion liras, while imports climbed from only 8.2 billion liras in August 2021 to 23.8 billion liras.

Consequently, the volume of foreign trade - exports and imports combined - in local currency exhibited a strong 159 percent increase from August 2021 to touch 34.2 billion liras last month.

The Trade Ministry reported on Sept. 2 that the country's exports rose by 13.2 percent year-on-year to $21.3 billion. The annual increase in imports was nearly 41 percent to $32.6 billion. The country's foreign trade balance posted a deficit of $11.3 billion, rising 162 percent from a year ago.

Türkiye's foreign trade volume stood at $54 billion in August, up from $42 billion in the same month of last year.

The export-to-import coverage ratio declined from 81.4 percent in August 2021 to 65.4 percent last month.

"Excluding energy and gold imports, the coverage ratio was 91.6 percent," said Trade Minister Mehmet Muş.

Muş also said that the recent hikes in electricity and natural gas prices became inevitable due to higher energy costs globally and subsidies offered.

Türkiye normally would pay between $35 billion and $40 billion each year for energy imports but last year the country's energy import bill climbed to $51 billion and it may further rise above $100 billion in 2022, he explained.

Electricity prices for households were increased by 20 percent, effective Sept. 1, the Energy Market Regulatory Authority (EPDK). Prices for industry were also hiked by 50 percent.

The Petroleum...