Supporting the Conversion of Foreign Currency Originating Abroad into Turkish Lira
The communiqué titled “Supporting the Conversion of Foreign Currency from Abroad into Turkish Lira” (ISSUE: 2023/5) was published in the Official Gazette No. 32085 on 26.01.2023.
The communiqué regulates the procedures and principles regarding the support to be provided to companies for selling their foreign currency from abroad to the Central Bank and converting it into Turkish Lira time deposits and participation accounts.
1) Support Provided by Selling Foreign Currency from Abroad to the Central Bank
During the sale of foreign currency from abroad to the Central Bank through banks, companies are required to commit not to purchase foreign currency for a period determined by the Central Bank. In return for this commitment, companies will receive a currency conversion support of 2% of the amount converted into Turkish Lira at the conversion rate.
2) Support Provided for Converting Foreign Currency from Abroad into Turkish Lira Time Deposits and Participation Accounts
According to the current practice under the Export General Communique, it is mandatory to sell 40% of export-related foreign currency to the Central Bank.
Under the new communiqué, for the remaining portion of the foreign currency sold to the Central Bank, the following conditions apply:
- Conversion into Turkish Lira time deposits and participation accounts at the conversion rate,
- Commitment not to purchase more foreign currency than the amount sold to the Central Bank for the period determined by the Central Bank.
Companies that meet these conditions will receive a currency conversion support of 2% of the amount converted into Turkish Lira at the conversion rate.
Additionally, the term “foreign currency from abroad” includes foreign currency earned from services provided to foreigners in Turkey, foreign currency income from abroad, and foreign currency brought into the country from foreign assets held by companies.
The procedures and principles for both support payments will be determined by the Central Bank.
You can access the related communiqué here.
Best regards,
BİLGENER
