Amendments to Decree No. 32 on the Protection of the Value of the Turkish Currency
Communiqué No: 2025-32/72 on the Amendment to the Communiqué No: 2008-32/34 on the Decree No. 32 on the Protection of the Value of Turkish Currency (Communiqué No: 2025-32/72), which was published in the Official Gazette dated 06.03.2025 and numbered 32833 and entered into force as of the date of publication, introduced certain amendments.
Regulations Introduced under the Communiqué
With the new regulation, the possibility for Turkish residents to enter into foreign currency denominated or foreign currency indexed transactions in certain contracts has been expanded. As of 06.03.2025, foreign currency denominated or foreign currency indexed securities sales contracts can be concluded between Turkish residents. This eliminated the obligation to pay in Turkish lira, which was mandatory under the previous regulation, except for contracts for the sale of vehicles.
Old Regulation:
According to the old regulation, Turkish residents could determine their payment obligations in foreign currency in securities sales contracts other than vehicle sales contracts. Therefore, payments were made in Turkish lira.
The Impact of the New Regulation on Mergers and Acquisitions:
Pursuant to the new regulation, it is possible to determine the payment price in foreign currency or indexed to foreign currency in contracts for the sale of movable property, with the exception of contracts for the sale of vehicles.
Whether or not share transfer sales can be considered as “sale of securities” has been a subject of debate for a long time. According to the previous regulation, share sales transactions were deemed to be transactions that had to be denominated in Turkish lira. However, with the amendment to the Communiqué, share sales can also be conducted in foreign currency, which will make a significant contribution to the domestic investment ecosystem.
The Communiqué abolished the obligation of Turkish currency denomination of securities sales contracts between Turkish residents, and made it possible for them to determine the payments and obligations arising from contracts other than securities sales in foreign currency or indexed to foreign currency.