The Ministry of Treasury and Finance has introduced flexibility for foreign currency payments after 3 years. Now, foreign currency can be used in securities sales other than vehicles.

The notifications related to the “Decree No. 32 on the Protection of the Value of Turkish Currency” by the Ministry of Treasury and Finance were published in the Official Gazette and became effective. According to information obtained from the Ministry, the regulation allows payment obligations in foreign currency or indexed to foreign currency to be met in securities sales contracts in line with macroeconomic conjuncture-compatible exchange rate policies. The Turkish Currency Value Protection Decree No. 32 had previously stipulated on September 13, 2018, that the contract price and other payment obligations cannot be determined in foreign currency or indexed to foreign currency in certain types of contracts concluded between residents in Turkey. Exceptions to this provision were also specified in the notification. With the amendment made on April 19, 2022, through the notification, payment obligations arising from securities sales contracts were required to be accepted and completed in Turkish lira. The Ministry removed the obligation introduced in 2022 after monitoring the operation and effects on the market.

FOREIGN CURRENCY BAN WILL CONTINUE IN SOME SERVICES
Thus, it became possible to fulfill payment obligations in foreign currency or indexed to foreign currency in securities sales contracts excluding vehicle sales contracts. The foreign currency ban will continue in some services including consultancy, brokerage, and transportation. In order to combat informal economic activities more effectively within the scope of the financial sector credibility and Turkey’s compliance with the Financial Action Task Force (FATF) standards, the Ministry continues to take steps. In another notification, the storage and retention period of camera recordings, currently set at one year, for authorized institutions (currency exchange offices) – an essential actor in the financial sector – was extended to two years to enhance the effectiveness of monitoring and supervision activities.