The Communique Regarding Decree No. 32 on the Protection of the Value of Turkish Currency Has Been Amended

A Communique published in the Official Gazette No. 31814 dated 19 April 2022 (“Amendment”), has amended the Communique on Decision No. 32 on the Protection of the Value of Turkish Currency, published in the Official Gazette No. 26801 dated 28 February 2008 (“Communique”).

You can read the Amendments here. (Available in Turkish only).

What Has Changed?

Prior to the Amendment, real and/or legal entities residing in Turkey could agree on prices and/or the payment obligations in signed agreements for the sale of movables, other than vehicles, such as raw materials, equipment, etc., in foreign currency or indexed to foreign currency.

According to the Amendment, real and/or legal entities residing in Turkey who are parties to such sale agreements can still determine prices and payment conditions in, or as indexed to foreign currency. However, parties are now obliged to perform the payment obligations in Turkish currency. Therefore, even if prices are agreed in foreign currency or as indexed to foreign currency, buyers must fulfill the payment obligations in Turkish currency.