Duvar English
The crisis triggered by allegations that counterfeit U.S. dollars printed abroad are being introduced into Turkey’s market has begun to hit exporters.
Reports suggested that fake $50 and $100 banknotes could pass through ATMs and money-counting machines undetected. As a result, exchange offices and banks have been reportedly refusing to accept U.S. dollars.
Vice President of the Organic Clothing Manufacturers Association and Istanbul Chamber of Commerce Assembly Member Musa Evin highlighted that Turkish exporters receive payments for exports in foreign currency.
He noted that exporters are required to convert 30% of these incoming foreign currency earnings into Turkish lira immediately upon receipt.
Evin stated, “Exporters usually keep the remaining foreign currency after the mandatory conversion and exchange it in parts as needed. Now, with the end of the month approaching, we have salaries and checks to pay. However, due to the counterfeit currency crisis, banks and exchange offices are unwilling or refusing to exchange foreign currency.”
According to Evin, if exporters could not convert their foreign currency, they would be unable to pay salaries. Moreover, failing to honor checks and other payments would damage their creditworthiness with banks and in the market, according to the exporter.
“Necessary measures must be taken to prevent us from being adversely affected. Otherwise, both our companies and employees will face serious challenges,” he underscored.
Turkey works to halt circulation of fake US dollars
Turkish authorities were checking currency exchanges and cash dispenser machines on Nov. 28 to help avert any damage from the circulation of counterfeit U.S. dollars, which has prompted a number of banks to stop accepting some of the bills.
The Central Bank said it was working with judicial authorities to address the counterfeiting issue and had shared a report and guidance with lenders after having examined the fake U.S. banknotes.
Though it was unclear how much counterfeit currency was in circulation across the country, several banking sources said that several foreign exchange offices and banks were no longer accepting some U.S. dollars.
A source with knowledge of the matter told Reuters that there were no related problems with the financial system.
Several banking sources have said some $50 bills and $100 bills are suspected of being counterfeit and are not currently detected by money-counting machines.
The Turkish Banking Association said these machines as well as cash dispenser machines, or ATMs, were being checked and updated to halt any further circulation of counterfeit bills.
The source told Reuters that a planned rapid system-wide update to money-counting machines would make detection possible.
Separately, a prosecutor’s office in Istanbul launched an investigation into the issue.
