Bangladesh's earnings from exports to Turkey dropped by 19.50 per cent in the first 10 months of the current fiscal year. However, in financial year 2012-13, export earnings from Turkey grew by 146.35 per cent. Following the imposition of safeguard duties by Turkey on readymade garment imports from Bangladesh, Bangladesh’s export earnings witnessed a drastic fall in financial year 2011-12. Export earnings in financial year 2012 decreased by 64.26 per cent compared to earnings in financial year 2011.

Among the reasons for the fall in export earnings is the devaluation of the euro as well as the Turkish lira. Domestic consumption in Turkey decreased a bit due to a fall in the value of the euro. In last one year, the lira depreciated by two per cent against the euro and about 20 per cent against the dollar.

Amid the depreciation of the local currency, Turkish consumers prefer local production to imports. Due to the devaluation of the local currency production costs in Turkey became cheaper than imports and so the country started to utilise its capacity in production. Depreciation of the euro is one of the reasons for the negative export growth in Turkey as payments between Bangladesh and Turkey are settled in euro.