More and more fake dollars are flooding exchange offices and banks in Turkey. The problem, meanwhile, is so great that the currency exchange is about to collapse. Even the banknote counting machines did not recognize the mints.
Ever since Ottoman times, the large covered bazaar in Istanbul - Kapalacars - has been the most important center for commercial and financial operations in Turkey. In the beginning, gold and silver were traded there, and in the meantime, a significant part of foreign currency exchange was concentrated there, writes ARD.
The exchange rates determined there are an important indicator of market expectations and economic trends in the country. Every month, up to four billion US dollars are exchanged in this place. However, this has changed dramatically now. A jeweler, who has been working on Kapalacharsha for 50 years, told the "Hurriet" newspaper that more and more fake dollars are appearing on the market. “The last time we observed such a trend was during the time of Saddam Hussein”, says the man.
Money counting machines do not recognize counterfeit dollars
Sait Bakistanli has been working in Kapalacharsha for over 30 years - he is the owner of a change office and is an expert in foreign currency exchange and the sale of jewelry. According to him, the volume of traded dollars on the market has dropped by 20 percent.
The main problem is the old hundred-dollar bills and the new fifty-dollar bills, because the banknote counting machines did not recognize the counterfeits, ARD explains. That is why many merchants no longer accept dollars at all or increase the commission by up to 10%. The experienced Pakistani businessman avoided talking about panic, but said the situation should be monitored carefully. According to him, there is a sense of anxiety in the market, which also affects the trade in gold, which is particularly important for Turkey.
Effect on banks
Counterfeit banknotes also end up in many banks. According to CNN Türk, institutions have already warned bank employees to exercise increased caution. Mustafa Yunver, chairman of the Association of Exchange Bureaus, told the "Hurriet" newspaper that the crimes were the work of counterfeiters from the Middle East, Asia and the Balkans. The deepening of the problems in recent times has almost completely collapsed the dollar exchange, Yunver also claims.
Problems for exporters too
Turkish companies, which are export-oriented, are now also facing serious problems as some banks refuse to exchange their dollars. Musa Evin, vice president of the Association of Ecological Clothing Manufacturers and a member of the Istanbul Chamber of Commerce, explained the problem to the Turkish online portal “Duvar”: Turkish exporters receive payments in foreign currency, and then are required to exchange 30 percent of them in Turkish lira.
Firms then exchange the remaining foreign currency depending on demand and changes in the exchange rate. Since inflation in Turkey is high, this is often a profitable business. At the end of the month, wages and checks are paid with the money exchanged. However, because of the problem of counterfeit money, banks and bureaux are unwilling to exchange foreign currency. The problem for companies is big - if they don't exchange their money, they can't pay wages, explains Evin. Also, if the checks they issue are not cashed by the banks, it will affect their creditworthiness and affect their position in the market.
Expert Evin calls on the government to take measures against counterfeit money so that businesses and their employees are not harmed, writes ARD. In the worst case, they may even end up bankrupt.
Five arrested
The government has announced that it will investigate the problems with the mints. Five people have already been arrested in the case. The Turkish Central Bank is already developing a new technological infrastructure that will make it easier to recognize fakes.