19.04.2022/27
Regarding the Payment Obligation for Foreign Currency Contracts
Communiqué (No: 2022-32/66) was published in the Official Gazette dated 19/04/2022 and numbered 31814 amending the Communiqué on Decree No: 32 on the Protection of the Value of Turkish Currency (Communiqué No: 2008-32/34).
According to the ninth paragraph of Article 8 titled “Foreign Currency Denominated and Foreign Currency Indexed Contracts” of the Communiqué, it is possible for Turkish residents to determine the contract price and other payment obligations arising from these contracts in foreign currency or indexed to foreign currency in securities sales contracts other than vehicle sales contracts to be concluded between themselves.
With the aforementioned amendment, the following sentence has been added to the said paragraph:
“However, the contractual payment obligations must be fulfilled and accepted in Turkish currency.”
Accordingly, although it is possible for Turkish residents to determine the contract price and other payment obligations arising from these contracts in foreign currency or indexed to foreign currency in securities sales contracts other than vehicle sales contracts to be concluded between themselves, payment obligations must be fulfilled in TL.
It is considered that this amendment also covers contracts for commercial movable assets such as commodities and fixtures.
On the other hand, according to the amendment made to paragraph 15 of the aforementioned article, it is possible to agree, pay and accept the contract price and other payment obligations arising from these contracts in foreign currency or indexed to foreign currency in contracts other than real estate sales and real estate leasing contracts to which public institutions and organizations or Turkish Armed Forces Foundation companies are parties.
These amendments entered into force as of 19.4.2022.
The relevant Communiqué is available here.
The current version of the Communiqué on Decree No. 32 on the Protection of the Value of the Turkish Currency (Communiqué No: 2008-32/34) is also available here.
Sincerely,
BİLGENER
