Use of foreign currency for the following transactions between persons/entities domiciled in Turkey has been banned:

  1. sale of movable and immovable property,
  2. leasing of movable and immovable property including fleet/automobile and financial lease,
  3. employment,
  4. service,
  5. work contracts, and
  6. other payments that arise due to these transactions.

As a result, price of the above agreements cannot be in foreign currency and cannot be based on foreign currency.

Further, the price in the agreements within the scope above shall be re-determined by the parties with Turkish Lira within 30 days as of September 13, 2018.

An administrative fine between TRY 3.000 - 25.000 can be imposed for non-compliance.

"The Decision on Amending the Decision No. 32 on Protecting the Value of Turkish Currency" was published in the official gazette today on September 13, 2018.

Please note that the Decision suggests that certain exemptions may be brought by the Ministry of Treasury and Finance.

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.