On the Sale of 25% of Export Prices to the Central Bank
Pursuant to the Communiqué on Decree No. 32 on the Protection of the Value of the Turkish Currency (Communiqué No: 2018-32/48), it is obligatory to transfer or bring the amounts related to export transactions realized by Turkish residents to the export intermediary bank within 180 days from the date of actual export, except for the exceptions specified in the Communiqué.
The procedures and principles regarding this practice are included in the Export Circular dated 16/01/2020 issued by the Central Bank of the Republic of Turkey.
With the Additional Article 1 added to the aforementioned Circular, 25% of the export proceeds linked to the Export Price Acceptance Certificate (EPC) or Foreign Exchange Purchase Certificate (FX Purchase Certificate) must be sold to the Central Bank through the bank issuing the relevant document.
Regarding the implementation of the said article, the CBRT published the “Implementation Instruction on Foreign Exchange Sales to the Central Bank of the Republic of Turkey within the Scope of Annex Article 1 of the Export Circular”. According to the said instruction;
- Export price foreign currencies denominated in US dollars, Euros and British pounds that are linked to IDB or DAB are within the scope of this Implementation Instruction.
- 25% of the export price foreign exchange linked to the IDR or DAB shall be sold to the bank issuing the IDR or DAB to be sold to the Central Bank at the transaction rate on the date of issuance of the IDR or DAB.
- US dollar, Euro and British pound sterling accounts will be opened in the name of the Central Bank at the Bank and the foreign exchange purchased by the bank within the scope of this Implementing Instruction will be reported to the Central Bank until 17:00 and transferred to the said accounts in bulk.
- Foreign exchange transferred by the Bank to the Central Bank’s account will be purchased by the Central Bank at the transaction rate.
On the other hand, according to the Export Circular and the Communiqué on Decree No. 32 (Communiqué No: 2018-32/48), exports of services, micro-exports and transit trade are excluded from this application. Therefore, it is not possible to issue an IDR for these amounts and make sales to the CBRT.
In addition, FX obtained from exports to the countries listed in Annex (2) of the Export Circular do not require the issuance of an IDR and therefore do not require sales to the CBRT.
The full text of the implementation instruction is available here.
You can also access the Export Circular issued by the Central Bank of the Republic of Turkey here.
Sincerely,
BİLGENER
