With the “Communiqué Amending the Communiqué No. 32 on the Protection of the Value of Turkish Currency”, which was published in the Official Gazette No. 31814 on 19.04.2022, rendering a payment in Turkish Liras becomes compulsory for movable sales contracts.
As a rule, contract prices and other payment obligations arising from the agreements listed in Communiqué No. 32 to be executed by and between Turkish residents shall not be agreed upon in foreign currency or indexed to foreign currency. However, certain contracts, including the movable sales contracts, are exempted from this prohibition.
In this respect, residents in Turkey are allowed to decide on the price and other payment obligations arising from the movable sales contracts –which are other than vehicle sales contracts- in foreign currency or indexed to foreign currency. However, with the new amendment in Communiqué No. 32, although the payment obligations can be determined in foreign currency or indexed to foreign currency, it is obligatory to fulfill and accept the payment obligations of these contracts in Turkish currency.
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Authors: Hande Ülker Pehlivan, Bilge Derinbay
Contact: bilge.derinbay@nsn-law.com