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Turkey: Limits on use of foreign currency by residents

Turkey: Limits on use of foreign currency by residents

A resolution published on 13 September 2018 in the official gazette limits the use of foreign currency by residents.

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Under the resolution, certain “residents” of Turkey cannot determine a contract value or other payment obligations arising from contracts denominated in a foreign currency and cannot index contracts in a foreign currency. This includes contracts for the purchase and sale or leasing of movable property and real estate and employment contracts.

As such, residents in Turkey (individuals and legal persons with legal domicile in Turkey including workers, self-employed and independent business owners abroad that are Turkish citizens) cannot enter into foreign currency contracts or foreign currency-indexed contracts, and existing contracts must be revised to reflect their value in the "Turkish Lira" within 30 days beginning 13 September 2018. 

 

Read a September 2018 report [PDF 190 KB] prepared by the KPMG member firm in Turkey

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