The Ministry of Treasury and Finance has clarified the confusion regarding the protection of the value of Turkish currency, which was published in the Official Gazette in recent days. The ministry has clearly determined which transactions will be carried out in Turkish lira within the framework of payments and contracts.
The ministry said: “Work continues with determination to prioritize the use of the Turkish lira and to fight against dollarization under free market conditions, in line with the main objective of the legislation on created to protect the value of the Turkish currency”.
Here is the announcement from the Ministry of Treasury and Finance:
As known, in the Presidential Decree of 12.09.2018 and numbered 85 and Decision No. 32 on the protection of the value of Turkish currency published in the Official Gazette of 13.09.2018, the value of the contract and other obligations of payment in certain types of contracts to be concluded between them in foreign currencies Certain regulations have been made regarding the fact that it cannot be determined in denominations or in indexed currencies, and the exceptions determined by our ministry after the said regulation are included in the Article 8 of Communiqué No.
With Communiqué No. 2022-32/66 amending Communiqué No. 2008-32/34 and published in the Official Journal of 19.04.2022 and numbered 31814, it is written in the ninth paragraph of Article 8 in question “However, The contractual payment obligations are in Turkish currency must be fulfilled and accepted. A sentence was added and the phrase “decide” in the fifteenth paragraph was replaced with “be decided, paid and accepted”.
Our ministry continues with determination to prioritize the use of the Turkish lira and to fight against dollarization under free market conditions, in accordance with the main objective of the foreign exchange legislation established to protect the value of Turkish currency.
In this context, with the said modifications; The exception, which allows contract prices to be determined in foreign currency or indexed to the foreign currency, is retained so as not to disrupt the functioning of the market and the continuity of exchanges; Empowerment Foundation companies, on the other hand, seek to be exempted from this obligation.
On the other hand, persons residing in Turkey;
- In connection with the execution of contracts for the sale of furniture concluded between them before 04.2022, the condition of fulfilling and accepting payment obligations in Turkish currency in connection with securities denominated in foreign currencies put into circulation before the date of entry into force of Communiqué no. 2022-32/66 is unsolicited,
- Execution and acceptance of payment obligations in Turkish currency within the framework of invoices issued before 04.2022,
- Borsa Istanbul A.Ş. Our Ministry has deemed it appropriate that transactions for the purchase and sale of precious metals and stones carried out in foreign currencies on the precious metals and stones market and the payment obligations in connection with the clearing of these transactions do not are not required to be completed and accepted. in Turkish currency.
• That the expression “moveable” in the Communiqué covers all kinds of goods and property which do not fall within the definition of an immovable,
• Compliance with and acceptance of payment obligations regarding securities sales contracts concluded/to be concluded between residents of Turkey and non-residents, in Turkish currency, since the amendment made concerns the payment obligations of securities sales contracts concluded/to be concluded perform between residents of Turkey, there is no obligation,
• Checks etc. issued in foreign currency on and after 19.04.2022, the effective date of the amendment. It is not possible to use payment instruments for the fulfillment of payment obligations subject to contracts for the sale of securities concluded/to be concluded between residents of Turkey,
• It is noted that the amendment does not include a provision changing the current status of vehicle sales contracts, and that the contract price and other payment obligations arising from such contracts in vehicle sales contracts to be entered into between residents of Turkey after the change, as before the change on 19.04.2022, are in foreign currency or pegged to a foreign currency that cannot be determined
• Contracts concluded concerning transactions carried out within the framework of Law No. 4749 regulating public finance and debt management are subject to the seventeenth paragraph of article B of the Communiqué and the obligations relating to these contracts are not within the scope of the amendment made on 19.04.2022,
• Within the framework of Law No. 6362 on the capital market and the regulations made on the basis of this law, the creation, issue, negotiation and transactions of capital market instruments (including instruments of the foreign capital market and certificates of deposit and shares of foreign investment funds) in foreign currencies currency is possible in accordance with the eighteenth paragraph of article 8 of the Communiqué and the obligations relating to these transactions do not enter into not within the scope of the amendment of 19.04.2022,
• It would be useful to clarify that no changes have been made regarding the acceptance and performance of payment obligations in Turkish currency regarding contracts other than movable sales contracts in the other paragraphs of Article 8 of the Communiqué, and that the existing exceptions are valid. “