File - People shop at a market in preparation for the holy month of Ramadan in Ankara, Turkey on June 27, 2014, ahead of the Muslim holy fasting month. (Mehmet Murat ?nel - Anadolu Agency)
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As Europe's economic recovery stutters and the U.S. shows strong signs of progress, experts are estimating that a euro/dollar ratio – how many U.S. dollars are needed to purchase one euro – could hit Turkey's economic performance.Turkey makes half of its exports in euros and more than half of its imports in dollars. Turkey makes 64 percent of its imports in U.S. dollars according to TurkStat, leaving the country vulnerable to fluctuations in the euro/dollar rate.The ECB lowered its benchmark interest rate June 4 to 0.15 percent from 0.25 percent and reduced its deposit rate below zero, to -0.1 percent, in an effort to boost activity.Claiming that a possible interest rate hike from the Federal Reserve will further decrease the euro/dollar rate, Demircioglu said that this will increase the cost of imports as Turkey makes over 60 percent of overall imports in dollars.
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