Significant Amendments in the Legislation on the Protection of the Value of the Turkish Currency

In the Official Gazette dated 15 March 2025, a decision to amend the Decision No. 32 on the Protection of the Value of the Turkish Currency (“Amendment Decision”) was published.

The Amendment Decision has come into effect as of 15 March 2025, except for the provision that transactions carried out in precious metal deposit accounts without physical delivery are considered foreign exchange transactions. The referred provision came into effect on 17 March 2025, and banks begun to apply foreign exchange transaction tax on these transactions.

Pursuant to the Amendment Decision:

• The limit for the amount of Turkish Lira (TRY) that can be taken abroad has been updated from TRY 25,000 to TRY 185,000. If an amount exceeding this limit is to be taken abroad, the principles determined by the Ministry of Treasury and Finance of the Republic of Turkey must be followed.
• Banks will also be able to trade all types of derivative instruments, including futures and options contracts based on foreign currency and precious metals, structured according to the capital markets legislation.
• It is not mandatory that the derivatives transactions conducted by residents in Turkey on their own initiative with financial institutions abroad, are executed through banks and intermediary institutions, provided that no promotional, advertising, and marketing activities targeting residents in Turkey are not conducted about these. However, the transfer of funds related to these transactions must be conducted through banks.
• Individuals other than institutions authorized by the Capital Markets Board are not permitted to act as intermediary for leveraged transactions and derivative instrument transactions that are subject to the same provisions as leveraged transactions, and transfer abroad related to such transactions are not permitted except by the mentioned institutions. Banks, payment institutions, and electronic money institutions are required to take necessary measures to prevent transactions contrary to this provision.
• Banks will also be able to import both standard and non-standard unprocessed precious metals.
• Sales of scrapped precious metals cannot be made to individuals other than jewelry businesses authorized by the Ministry of Trade or real persons residing in Turkey having tax plates indicating that they are engaged in the production or trade of precious metals.
• Residents in Turkey may obtain loans denominated in foreign currency or precious metals from domestic sources. As collateral for such loans, guarantees and sureties may be provided in foreign currency or precious metals, addressed to resident banks and financial institutions, by the borrower’s resident group companies or by natural or legal person shareholders who directly own shares in the borrower.