The Communiqué Amending the Communiqué No.2008-32/34 Regarding Decree No.32 on the Protection of the Value of the Turkish Currency Has Been Published

Communiqué No 2022-32/66 Amending Communiqué No. 2008-32/34 regarding Decree No.32 on the Protection of the Value of Turkish Currency (the “Amendment Communiqué“) was published in the Official Gazette dated 6 March 2025 and entered into force on the same day. The Amendment Communiqué revoked the prohibition on foreign currency payments in contracts for the sale of movable goods, with the exception of contracts for the sale of vehicles.

UPDATES

Under a similar amendment communiqué related to Communiqué No 2008-32/34 regarding Decree No.32 on the Protection of the Value of Turkish Currency, published in the Official Gazette on 19 April 2022, it was mandated that payment obligations arising from the sale of movable goods between residents of Türkiye must be made and accepted in Turkish lira.

With this new Amendment Communiqué, the prohibition on making payments in Turkish lira under contracts for the sale of movable goods has been removed, except for vehicle sales contracts. Consequently, as of 6 March 2025, residents of Türkiye are permitted to determine the contract price and any other payment obligations arising from contracts for the sale of movable goods, apart from vehicle sales contracts, in a foreign currency or indexed to a foreign currency. Such payments can now be made and accepted in a foreign currency.

CONCLUSION

Particularly with regard to investments made by foreign investors through their subsidiaries in Türkiye, the legislation that mandated payments in Turkish lira while allowing payment obligations to be set in a foreign currency in contracts for the sale of movable goods, imposed additional burdens on the transaction parties. These burdens included the need to negotiate the exchange rate to be applied on the payment date and assess the exchange rate risk that might arise during the investment period. It was also observed that some foreign investors, due to this prohibition, carried out their investments through group companies located abroad, rather than through their subsidiaries in Türkiye. The removal of this prohibition under the Amendment Communiqué is expected to have a positive impact on foreign investments.