Turkey raises Bosphorus crossing tariffs to boost foreign currency inflow

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Turkey is increasing its fees for commercial ships crossing the straits between Çanakkale and İstanbul by over 8% as of July 1 to increase the inflow of foreign currency, Transport and Infrastructure Minister Abdulkadir Uraloğlu announced yesterday (June 11), emphasizing that the tolls are based on the rules outlined in the Montreux Convention.

Turkey is entitled to charge lighthouse, rescue, and medical fees according to the 1936 international agreement governing the strategic straits that connect the Black and Mediterranean seas.

"From 1983 to October 7, 2022, 0.8063 dollars was charged per net ton for international ships passing through the straits. After 39 years, on October 7, 2022, with a presidential decision, we renewed these fees and raised the net ton payment for ships to 4.08 dollars," he said, adding that as of July 1, the tariff will be 4.42 dollars per ton.

This means that a 10,000-ton ship will need to pay 17,760 dollars as of next month instead of the previous fee of 16,393 dollars.

"With this hike, we are taking a historic step to increase the inflow of foreign currency," the Minister added.

Depleted foreign reserves

Turkey is in dire need of foreign currency as its forex reserves reached their lowest point since February 2002 before the May 28 presidential second round. This decline is frequently attributed to government intervention in the markets aimed at stabilizing the lira before the elections.

The country has been grappling with currency crises and soaring inflation in recent years, a situation that critics largely attribute to President Recep Tayyip Erdogan's unorthodox conviction that raising interest rates results in increased inflation. (HA/WM)