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

The regulations regarding “Decree No. 32 on Protection of the Value of Turkish Currency” by the Ministry of Treasury and Finance have been published in the Official Gazette and come into effect. According to information obtained from the Ministry, the regulation was made to fulfill payment obligations in foreign currency or indexed to foreign currency in securities sales contracts in line with macroeconomic conjuncture-compliant exchange policies. THREE YEARS LATER LIFTED The amendment made on September 13, 2018, in Decree No. 32 on Protection of the Value of Turkish Currency stated that in certain types of contracts concluded among residents in Turkey, the contract price and other payment obligations cannot be determined in foreign currency or indexed to foreign currency. Exceptions to this provision were also specified in the related regulation. With the amendment made on April 19, 2022, it was made mandatory for payment obligations arising from securities sales contracts to be accepted and fulfilled in Turkish lira. The Ministry removed the obligation introduced in 2022 by monitoring the operation of the practice and its effects on the market.

FOREIGN EXCHANGE 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 other than vehicle sales contracts. The foreign exchange ban will continue in some services including consultancy, intermediation, and transportation. SURVEILLANCE FOOTAGE WILL BE KEPT FOR TWO YEARS Additionally, to ensure more effective combat against informal economic activities within the reliability of the financial sector and compliance with the Financial Action Task Force (FATF) standards in Turkey, the Ministry continues to take steps. In another regulation, the storage and retention period for surveillance footage, which is currently one year, was extended to two years to enhance the effectiveness of the supervision and surveillance activities of authorized institutions (currency exchange offices) that are important actors in the financial sector.