CB Simplifies The Foreign Exchange Position Notification!

The Central Bank of the Republic of Turkey ("CB") amended the Regulation on Procedures and Principles for Monitoring Transactions Affecting Foreign Exchange ("FX") Position ("Regulation"), changing the notification criteria for firms obligated to notify its FX p,ositions regarding its foreign exchange assets and liabilities to the CB. The amendment will enter into force on January 1, 2024.

With the amendment to the Regulation, summary FX position reporting requirementwhich has been in effect since March 2023 for firms having a total cash and non-cash loan balance equal to or exceeding TRY 10 million is abolished.

Further, the criteria for determining firms subject to reporting obligations will also change. The notification obligations will be based not on the total of cash loans in FX and loans indexed to FX but on the total cash loan, net sales revenue, and total assets size.