The Republic of Türkiye's Ministry of Treasury and Finance published amendments to Communiqué No. 2008-32/34 (“Communiqué”) regarding Decree No. 32 on the Protection of the Value of the Turkish Currency in the Official Gazette dated 6 March 2025 and numbered 32833. This amendment significantly eased the restrictions related to the prohibition on foreign currency payments. This amendment is effective as of the date of its publication.
Prior to such amendment in the Communiqué, persons residing in Türkiye were allowed to determine the fees and other payment obligations (such as interest, penalty clauses) arising from movable asset sale agreements, excluding vehicle sale agreements, in a foreign currency or indexed to a foreign currency and to fulfill payment obligations in foreign currency only in certain exceptional cases. Aside from exceptional cases, although the fees and other payment obligations could be set in or indexed to foreign currency, fees and other payment obligations under such agreements had to be fulfilled in Turkish Lira.
Following the recent amendment, it has become possible for persons residing in Türkiye to determine the fee in a foreign currency in the movable asset sale agreements, except for vehicle sale agreements. In addition to setting the fee in a foreign currency, other payment obligations arising from such agreements may also be specified in or indexed to a foreign currency as of 6 March 2025. Therefore, in cases where the Communiqué allows the fee to be set in a foreign currency for movable asset sale agreements, payment obligations may also be fulfilled in such foreign currency
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
