Foreign Exchange Rate Put Stores in a Difficult Case

Share on Facebook0Share on Google+0Tweet about this on TwitterShare on LinkedIn0

Exchange rates have started to show significant increases in recent times. As new records were added to the records every day, the stores in the shopping centers were in a difficult situation. Because of the old contracts, the store owners who have to pay the rent on the daily exchange rate find that the solution is closing the store or opening a rental application.

Foreign-Exchange-Rate-Put-Stores-in-a-Difficult-Case.jpg

There are 70 thousand stores in the country including 412 branded streets and shopping malls. The number of workers working in these stores is close to 400. The head of the United Brands Association, Sinan Öncel, stated that many stores do not have the power to bear this situation. As the exchange rate continues to rise, many traders will have to close down because of the financial damage they have received. The closure of the stores will cause the workers who work in these stores to become unemployed.

Offering a solution for preventing the acceleration of store closures, Öncel also offered that stores can be offered paying their rents in TL. He added that the shops which want to continue to pay the rents in foreign exchange can continue. Offering this option to the store may remove bad influence on the stores which is caused by increasing the foreign exchange rate.

Foreign exchange-indexed work affect shops in two ways. First, the ability to flexibly change exchange rates makes it difficult to calculate future costs. The other problem is that the excessive increase in the currencies causes serious increases in the rents of the stores. If the increase continues at this rate, it is expected to close the store in serious amounts. The problems are expected to be solved as soon as possible.

You may also like...

Leave a Reply

Your email address will not be published. Required fields are marked *