29February2024

Amendment on the Right to Protect the Value of Turkish Currency

Communiqué (Communiqué No: 2024-32/69) Amending the Communiqué on Decree No: 32 on the Protection of the Value of Turkish Currency (Communiqué No: 2008-32/34) was published in the Official Gazette numbered 32474 on February 28, 2024.

The purpose of the Communiqué is to introduce certain exceptions to the principles of application of the prohibition of payment in foreign currency.

The relevant communiqué regulates that while some obligations are obliged to be paid in Turkish Lira, these payments can now be made in foreign currency.

With the regulation made in Article 8 of the Communiqué on Decree No. 32 on the Protection of the Value of the Turkish Currency (Communiqué No: 2008-32/34);

Payment obligations within the scope of negotiable instruments denominated in foreign currency that entered into circulation before April 19, 2022 within the scope of the performance of securities sales contracts concluded before April 19, 2022,
Payment obligations under invoices issued before April 19, 2022,
Precious metals and precious stones trading transactions carried out in foreign currency at Borsa İstanbul A.Ş. Precious Metals and Precious Stones Market and payment obligations within the scope of settlement of these transactions,
Payment obligations under securities sales contracts for exports to be realised through Foreign Trade Capital Companies (FTSC) or Sectoral Foreign Trade Companies (SFTC) based on an intermediated export contract and exports to be realised through companies with Export Consortium and E-Export Consortium status based on an intermediated export contract,
Payment obligations within the scope of transit and customs warehouse regimes, including the sale and delivery of exports subject to customs declaration, and securities sales contracts concluded for the delivery of goods to which temporary storage and free zone provisions are applied,
Payment obligations regarding the delivery of goods subject to the securities sales contract made within the scope of foreign trade transactions with companies operating in the free zone,

While it was obligatory to pay these obligations in Turkish Lira, these payments can now be made in foreign currency.

The effective date is set as 21.04.2022 for the first three subparagraphs and 28.02.2024, the date of publication of the Official Gazette, for the other subparagraphs.

You can access the Official Gazette regarding the subject matter here (In Turkish).

Should you have any queries or need further details, please contact your customer representative.

Author Gökşen Bakay, Taylan Ege Günel, Category Law on Protection of the Value of Turkish Currency

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