Amendment to the Communiqué Regarding the Decree No. 32 on the Protection of the Value of Turkish Currency
What the Communiqué had changed?
The amendments of the Communiqué had made the payments of the contract price and other payment obligations to be made in Turkish currency obligatory in movable sales contracts to be concluded among the residents of Turkey, excluding the vehicle sales contracts.
Whereas it was possible to decide, pay and accept the contract prices in movable sales contracts in foreign currency before the amendment, the Communiqué had stipulated that the contract prices determined in foreign currency should be paid and accepted in Turkish lira by the parties. Transactions involving public institutions and organizations or affiliates of the Turkish Armed Forces Foundation had been exempted. The effective date of the Communiqué had been determined as 19.04.2022.
What explanations are included in Ministry of Treasury and Finance’s announcement?
An announcement regarding the Communiqué was published on the website of the Ministry of Treasury and Finance, due to the amendment made with the Communiqué caused some uncertainties in practice. In the announcement;
• It has been stated that the Communiqué was published in order to continue to prioritize the use of the Turkish Lira and to fight against dollarization within the framework of free market conditions, in line with the main purpose of the foreign exchange legislation created to protect the value of the Turkish currency.
• Within the scope of the performance of the contracts concluded before 19.04.2022, the payments for the performance of the foreign currency negotiable instruments (checks, bills) circulated before 19.04.2022 and the invoices issued before this date shall not be required to be made in Turkish lira. It will not be possible to use the payment instruments such as checks etc. issued in foreign currency on or after 19.04.2022 for the fulfillment of the payment obligations of the movable sales contracts concluded/to be concluded among the residents of Turkey.
• Precious metals and precious stones trading transactions carried out in foreign currency in Borsa İstanbul A.Ş. Precious Metals and Precious Stones Market and payment obligations within the scope of settlement of such transactions shall not be required to be fulfilled and accepted in Turkish currency.
• The term "movable" in the Communiqué shall include all kinds of goods that do not fall under the definition of real estate.
• There will be no obligation to fulfill and accept payment obligations in Turkish currency regarding movable sales contracts concluded/to be concluded between residents of Turkey and non-residents.
• The amendment does not change the current status of vehicle sales contracts. As before, the contract price and other payment obligations arising from the vehicle sales contracts to be concluded among residents of Turkey cannot be determined in or indexed to foreign currency,
• Transactions carried out within the scope of the Law No. 4749 on the Regulation of Public Finance and Debt Management and creation, issuance, trading of capital market instruments (including foreign capital market instruments and depository receipts and foreign investment fund shares) in foreign currency and contracts regarding the transactions within the framework of the Capital Market Law No. 6362 shall not be subject to prohibition.
• The previous regulations (e.g. the obligation to determine contract prices in Turkish lira in service contracts, real estate sales and rental contracts) and existing exceptions (e.g. if one of the parties has foreign capital) regarding contracts other than movable sales contracts will continue to be valid.