Presidential Decree No. 9595, published in the Official Gazette, dated 15 March 2025, and numbered 32842, has unveiled changes to Decree No. 32 on the Protection of the Value of Turkish Currency ("Decree No. 32"), the cornerstone of the Türkiye's foreign exchange ("FX") control regime. Below are the key takeaways from this regulatory overhaul.
- Higher Reporting Threshold for Outbound Cash Exports of Turkish Lira
The longstanding TRY 25,000 threshold for cross-border movement of physical Turkish lira, beyond which banks and customs authorities were required to notify the Ministry of Trade of the Republic of Türkiye ("Ministry of Trade") via a cash declaration form, has been raised to TRY 185,000.
- Derivatives Trading: No Mandatory Intermediary Requirement
The regulatory framework governing cross-border derivatives transactions has been refined, reinforcing the prohibition on the advertisement, promotion, solicitation, and marketing of such instruments to Turkish residents while simultaneously offering greater flexibility to individual investors.
While cross-border derivatives transactions must still be conducted through authorized banks and brokerage firms authorized by the Capital Markets Board ("CMB"), Turkish residents may now engage in such trading directly with foreign financial institutions without the involvement of a Turkish intermediary, provided they do so on their own initiative and that no advertisement, promotion, solicitation, or marketing is carried out. That said, all fund transfers linked to these transactions must continue to be processed exclusively through banks.
- Leveraged Transactions: Stricter Controls & Cross-Border Transfer Restrictions
The existing prohibition on unauthorized entities intermediating leveraged transactions or facilitating cross-border fund transfers for such trades remains firmly in place.
However, under the revised framework:
- Banks and electronic money institutions are now obligated to monitor and prevent unauthorized leveraged transaction transfers, with a duty to report violations to the Ministry of Treasury and Finance.
- The CMB, Banking Regulation and Supervision Agency, and the Central Bank of Türkiye ("CBRT") are mandated to coordinate oversight efforts and share transaction data when necessary.
- Banks Receive Greenlight to Trade Precious Metals
Banks are now permitted to trade in standard unprocessed and minted precious metals. Accordingly, the CBRT and banks are now authorized to open deposit accounts not only for gold but for all precious metals, for both domestic and foreign residents.
- Precious Metals Deposit Accounts Classified as Foreign Exchange Transactions
Non-physical transactions conducted through precious metals deposit accounts will now be legally classified as foreign exchange transactions, bringing them under the CBRT's existing FX regulatory framework.
- New Collateral Framework for Foreign Exchange and Precious Metals Loans
Finally, foreign exchange and precious metals-denominated loans within Türkiye may now be secured through guarantees or sureties provided by the borrower's domestic group of companies or direct individual/corporate shareholders. These guarantees and sureties may be issued in favor of a Turkish bank or financial institution.
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