Regardless of whether the term ever appears explicitly in their planning documents, FX trading becomes part of the daily operations of Turkish importers. Every dollar or euro invoice from an overseas supplier is an exposure to currency markets that must ultimately be settled. Importers paying in foreign currency for machinery parts, electronics components, or raw materials are most exposed to fluctuations in the lira between the time they place an order and the time they make payment, a gap that can span weeks or months depending on shipping and production times. This delay turns what appears to be a straightforward purchasing decision into a currency-risk management exercise, whether importers intend it or not.
Many importers don’t appreciate the significance of the payment time when they are negotiating with suppliers in the first place. If the lira falls during the period but the order was placed at a profitable exchange-rate level, then when the invoice is due it may actually be more expensive.If the exchange-rate taken was not the most convenient for the buyer and the lira drops during the period of the order it may become more expensive by the time the invoice is due. Some importers agree to make partial payments in order to guarantee a rate for a specific amount, and they are willing to also take the cash-flow risk for the balance. There are instruments available in the Turkish financial system to systematically hedge this exposure. The forward contract can be used by an importer to use a set rate for a later date of payment and provide a level of certainty in budgeting. Lira forward rates are based on the interest rate differential with the invoice currency, thus incorporating a known cost into each contract. Forward contracts are suitable for importers with regular and regular buying cycles, as they offer a certain administrative ease when used on a repetitive basis.
Supplier relationships introduce a separate layer of complexity. To retain Turkish customers, some overseas suppliers have begun quoting directly in Turkish lira, effectively absorbing the exchange-rate risk in return for a pricing premium that compensates them for that exposure. Importers considering this route need to assess whether the premium charged on lira-denominated invoices is justified by the reduced burden of managing dollar or euro exposure internally, a calculation that varies widely based on order size and payment timing. Suppliers offering lira pricing often limit the quote’s validity period, requiring importers to confirm orders quickly.
An additional factor that complicates the issues that are involved in the functioning of the working capital financing system is the presence of problems with the currency. These problems are often unforeseen for importers whose main interest is the purchase price of the goods. Adding another layer of currency risk on top of the goods risk is borrowing in foreign currency to pay for imports. Regulations introduced in 2018 limit foreign-currency borrowing by firms without foreign-currency revenue, which restricts this option for many small importers. Banks structuring these facilities increasingly include rate-adjustment clauses or recommend pairing the loan with a hedge, since unhedged foreign-currency debt has strained import-dependent firms during sharp lira depreciation.
Customs valuation and duty calculations present a related risk. Duties are generally calculated on the lira value of goods at the time of customs clearance, using the central bank exchange rate on the declaration date. Lira depreciation between order and clearance raises the effective duty burden independently of the commercial terms of the purchase. Import VAT, calculated on the customs value plus duties, rises with the same exchange-rate movement. Experienced importers factor this into their landed-cost calculations from the outset.
Treating FX trading as an operational discipline allows importers to build currency risk into supplier negotiations, financing structures, and cash-flow planning from the earliest stage of each purchase. Firms that apply this approach consistently hold steady margins through periods of lira volatility. Exchange-rate exposure then becomes a managed variable within the cost of every import.