The Ministry of Treasury and Finance has introduced flexibility in foreign currency payments after 3 years. From now on, foreign currency can be used for securities sales payments excluding vehicles.

The regulations related to the “Decree No. 32 on the Protection of the Value of Turkish Currency” of the Ministry of Treasury and Finance were published in the Official Gazette and entered into force. According to information obtained from the Ministry, within the scope of exchange policies consistent with macroeconomic conditions, adjustments have been made to enable payment obligations in securities sales contracts to be fulfilled in foreign currency or indexed to foreign currency. REMOVED AFTER THREE YEARS With the amendment made on September 13, 2018, in the Decree No. 32 on the Protection of the Value of Turkish Currency, it was stipulated that the contract price and other payment obligations in certain types of contracts concluded by residents in Turkey cannot be determined in foreign currency or indexed to foreign currency. Exceptions to this provision were also regulated in the relevant notification. With the amendment made on April 19, 2022, in the notification, the obligation to accept and fulfill payment obligations arising from securities sales contracts in Turkish currency was made mandatory. The Ministry removed the obligation introduced in 2022 by monitoring the operation of the practice and its impact on the market.

CURRENCY BAN TO CONTINUE IN SOME SERVICES As a result, it became possible to fulfill payment obligations in securities sales contracts other than vehicle sales contracts in foreign currency or indexed to foreign currency. The currency ban will continue in some services including consultancy, brokerage, and transportation. RECORDINGS TO BE RETAINED FOR TWO YEARS Furthermore, the Ministry continues to take steps to combat informal economic activities more effectively to ensure the reliability of the financial sector and compliance with the Financial Action Task Force (FATF) standards in Turkey. In another notification, the storage and retention period of camera recordings for authorized institutions (currency exchange offices), which are significant players in the financial sector, was extended from one year to two years to enhance the effectiveness of oversight and supervision activities.