New Regulation on Foreign Currency Contracts: Flexibility in the Prohibition of Foreign Currency Denominated and Indexed Contracts for the Healthcare Sector

A new provision has been incorporated into Article 8 titled “Foreign Currency Denominated and  Foreign Currency Indexed Contracts” of the Communiqué (No: 2008-32/34) on the Decree No. 32 on the Protection of the Value of the Turkish Currency, thereby allowing for a new type of contract to be denominated in or indexed to, foreign currency.

Within this scope, it has been made possible for approved bodies operating in the Republic of Türkiye under the framework of the Medical Device Regulation and the In Vitro Diagnostic Medical Device Regulation, to execute (i) service agreements with manufacturers in accordance with the aforementioned regulations, and (ii) employment agreements with individuals residing in Turkey, in foreign currency or indexed to foreign currency.