— Att. Irem Sultan Gulden, LL.M

March 7, 2025

On March 6, 2025, an amendment was published in the Official Gazette, modifying paragraphs 9 and 15 of Article 8 of the Communiqué Regarding Decree No. 32 on the Protection of the Value of Turkish Currency.

The amendment to paragraph 9 provides significant flexibility to the regulation concerning movable sales contracts (excluding vehicle sales contracts) executed between persons resident in Turkey. While the contract price and other payment obligations could be stipulated in or indexed to a foreign currency, the payments had to be fulfilled in Turkish Lira.

— Before the Amendment:

Previously, although the contract price and other payment obligations could be stipulated in a foreign currency, there was an obligation for the payments to be fulfilled and accepted in Turkish Lira.

— After the Amendment:

With the new regulation, the obligation for payment obligations to be fulfilled and accepted in Turkish Lira has been removed, making payments in foreign currency possible.

This change provides a significant convenience, especially for companies involved in movable sales transactions that have foreign currency cost items and therefore need to price in foreign currency.

The previous regulation in paragraph 15 allowed for the contract price and payment obligations in contracts (with exceptions) to which public institutions and organizations or companies of the Turkish Armed Forces Foundation (such as Aselsan, Roketsan, Havelsan, etc.) are a party, to be stipulated, paid, and accepted in foreign currency. This provision was introduced to prevent public institutions and organizations and TAF Strengthening Foundation companies from being affected by the previous TL payment obligation for movable sales.

As the phrase concerning the TL payment obligation for movable sales has now been removed from paragraph 9, the wording in paragraph 15 for public institutions and organizations and TAF Strengthening Foundation companies has also been changed. The previous phrase, “stipulated, paid, and accepted” in foreign currency or indexed to foreign currency, has been replaced with only “stipulated.”