PROTECTION OF THE VALUE OF TURKISH CURRENCY LAW AMENDED NO MORE USD BASED TRADE IN SOME FIELDS

24.10.2018

 

On September 2018, the Law on the Protection of the Value of Turkish Currency was amended and published on the Official Gazette. According to the new law, agreement value and other payment obligations in movable and immovable property sale and purchase agreements, vehicle and financial leasing, all kinds of movable and immovable property leasing, work, service and construction agreements to be signed between those who reside in Turkey will not be determined in foreign currency or in a foreign currency-indexed way, except for the circumstances set forth by relevant ministry.

The amounts agreed as foreign currency in the effective agreements which were signed before will be re-determined in Turkish Liras until 14 October 2018 by parties except for the circumstances set forth by the Ministry. All purchase and rental agreements will be drawn up in Turkish Lira hereafter and will not be foreign currency-indexed. The existing foreign currency-based rental agreement will be converted into Turkish Lira.