Riyadh has decided to continue its boycott of Turkish goods which has added to the growing tensions between the two countries. Recently, Saudi Arabia has announced an official embargo on all imports for “made in Turkey” products. Notably, Turkish goods have been banned in Saudi Arabia for the first time in 30 years. Over the past few years, relations between Ankara and Riyadh have been strained due to differences in foreign policy. Currently, Saudi Arabia is putting pressure on local businesses forcing them not to trade with Turkey and advising its citizens to refrain from traveling to Turkish resorts. Lately, the country has been going through tough times. The foreign policy adopted by Turkey’s President Recep Tayyip Erdogan has resulted in the country losing its allies, trading partners, and sources of revenue. The national budget is suffering losses. Besides, the country’s access to global financial markets is restricted. The same will soon happen to Turkey’s major export market. The head of Istanbul Apparel Exporters’ Association commented on the situation, “Saudi Arabia is our main trading partner, but my Saudi counterparties no longer purchase from us as they were ordered by the government, so they are now afraid. By the end of the month, the trade will stop. We are shipping the last orders, and we do not know what to do next.” At first, Riyadh blocked hundreds of Turkish trucks from crossing the border. Now, the Saudis have imposed an official ban that could deal a hard blow to the already struggling Turkish economy. Amid this news, the Turkish lira tested new record lows. Even the Central Bank of the Republic of Turkey, which raised its interest rate from 8.25% to 10.25%, failed to stop the continued decline.
