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Expected Changes for Georgian Business if Turkey Starts Trading in Lira

Turkey ranks third among Georgia’s top exports markets, but it is leader in imports markets. According to Geostat, national statistics service of Georgia, Georgia’s exports in January-July made up 172 609.8 thousand USD, while imports from Turkey in the reporting period amounted to 829 158.4 thousand USD.

This statistics proves that Turkey is Georgia’s major trading partner.

Meanwhile, Turkish President Recep Tayyip Erdogan announced Ankara’s readiness to refuse dollars and euros in the country’s trade with its partners.

“We are preparing to carry on trade in national currencies with China, Russia, Iran, Ukraine, which account for the largest volume of bilateral trade. If European countries want to get free from the dollar pressure, we are ready to create a similar system with them,” Turkish President Recep Tayyip Erdogan stated during a meeting in Rize, Turkey.

From Turkey Georgia mainly imports textile goods, coating tiles, machineries, building materials, hygiene goods, laundry products and food products.

David Bidzinashvili, head of Association of Manufacturers of textile and Footwear Products, says that the national currency should have considerable reserves if Turkey starts trading in LIRA:

“Despite LIRA depreciation, the product that I need for production has not cheapened. Recently I bought the necessary materials in USD and I have to transfer USD under the LIRA exchange rate. Lira devaluation is profitable for small purchasers, but we, manufacturers, bear losses, because the product, for which this country buys raw materials in USD, has risen in value”,