Who will be the champion? The one who scored more goals or the one who conceded less goals?

Due to the cash congestion that is taking place around the world, it is evident that in some of the countries, foreign currency denominated debts will create strains on both country and sector basis for the next 3 years.


Both determining the economic monetary trends in the world, FED has printed 1.3 trillion dollars and ECB has printed 1 trillion euro since 2008. This have made it possible for the sectors in the developing countries to find money easily for new investments which led to growth.


But at the beginning of last year, in January 2017, the FED decided to raise interest rates by not exceeding 250 points four times a year after 2018, as well as started to recall 1.3 trillion dollars, which was distributed to the market with a monthly base rate increase of 250 points. After that point, the dollar and euro started to get appreciated with rising values.

Institutions and companies without foreign exchange gap, were not affected by this decision. However, the increase in foreign exchange rates in companies and countries that were in an open position caused difficulties both in the companies’ planned balances and in the countries’ inflation expectations.


Why is the FDS system the only way out for the sector?
First of all, let’s see what the FDS system is …
The Fix Dollar System or shortly called the FDS system is a billing system in which the prices of the products offered in the market are fixed by the number determined by the dollar type until a certain time and the daily installments are converted into TL during the sales.

For example;
1 m2 laminate parquet’s selling price is 4 euro.
If it is sold today, it will be billed as 4 euro X 5.5 TL (today’s rate) = 22 TL + VAT. The companies can add monthly maturity difference, transportation costs etc. on this, and / or make campaigns and receive payment by maturity.


The FDS system is the only way out for planning in the forest products industry. Nowadays many products of the forest industry such as; decor paper, balancing paper, related adhesives, chemicals, lock system patents, chips, about 30% of raw wood, spare parts from many lines in factories etc. are all dependent on the dollar or euro and therefore FDS system would make it possible for the factories to see the future and make proper plans. Thanks to the fixation of every product in this system, rising and falling in foreign exchange will no effect on the plans of the factories.

Therefore it will be the best to take the action and move our forest industry into the FDS system until foreign exchange and interest rates calm down. The AOS system is actually a better system but the business cycles do not allow it for the moment.

10.Köy / 10th Village

Column by Fikret Demir