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2018/4 Residents in Turkey Cannot Conclude Foreign Currency and Foreign Currency Indexed Agreements Except in Cases Determined By the Ministry
13.9.2018

Abstract: The Resolution on the Amendment of the Resolution No. 32 on the Protection of the Value of Turkish Currency was published on the Official Gazette dated September 13, 2018 and numbered 30534.

Explanations

The following paragraph (g) has been added to Article 4 "Foreign Currency" of the Resolution on the Amendment of the Resolution no.32 on the Protection of the Turkish Currency Value with Resolution no. 85 of the Presidential Decree published in the Official Gazette dated 13.09.2018, numbered 30534 and enacted at the date of its publication:

"Residents' in Turkey, except the situations determined by the Ministry, can not determine the contract value and other payment obligations arising from the contract in foreign currency or can not index them in foreign currency in contracts amongst themselves. Such contracts are; purchase and sales of movable and real estate, all kinds of movable and real estate rental contracts including charter and financial leasing, leasing contracts, employment contracts, service contracts and contracts of construction"

Also, in the provisional article 8 added to the Resolution, it has been explained that; excluding the cases determined by the Ministry the prices determined in the above-mentioned contracts and in the previously executed running contracts shall be redefined by the parties as Turkish Currency within 30 days following the date of entry into force of  paragraph (g).

Accordingly, with the scope being determined by the Ministry; residents in Turkey (real and legal persons who has legal domicile in Turkey including workers, self-employed and independent business owners abroad that are Turkish citizens) can not draw up foreign currency or foreign currency indexed contracts amongst themselves and such existing contracts are required to be revised in "Turkish Lira" within 30 days starting from 13.09.2018.

Residents in Turkey Cannot Conclude Foreign Currency and Foreign Currency Indexed Agreements Except in Cases Determined By the Ministry

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