Latest Amendments To The Turkish FX Legislation And Foreign Currency Lending Rules

At the beginning of 2018, important changes were made to the foreign exchange credit provisions, which will be discussed further in this article. Firstly, an amendment to the Decree numbered 32 on the Protection of the Value of Turkish Currency was published in the Official Gazette on January 25, 2018 (the "Decree"). Secondly, the Regulation on the Principles of the Central Bank of the Republic of Turkey's Monitoring of the Transactions Affecting Foreign Exchange Position was published in the Official Gazette on February 17, 2018 (the "Regulation"). Subsequently, the Central Bank of the Republic of Turkey issued the Capital Movements Circular on May 2, 2018 (the "Circular") clarifying the terms of the Decree. The aforementioned amendments to the legislation change the provisions on the disbursement of foreign exchange ("FX") credits as outlined below: