Central Bank launches a new era in foreign exchange conversion support
The support mechanism encouraging companies to convert their foreign exchange earnings from abroad into Turkish lira is being simplified and expanded as of October 1.
Treasury and Finance Minister Mehmet Şimşek announced that a new application has been introduced in the regulation of the Central Bank of the Republic of Turkey that encourages companies to convert their foreign currency revenues from abroad into Turkish lira.
Main purpose and scope of the regulation
Treasury and Finance Minister Mehmet Şimşek reported that important steps have been taken to increase the effectiveness of the Central Bank of the Republic of Turkey's foreign exchange conversion support application.
In the statement made, it was stated that the main purpose of the new regulation is to make the support mechanism more effective, inclusive, and compatible with the actual economic activities of companies.
New conveniences provided to exporters
It was noted that the access to support for companies contributing to exports through production and supply will be facilitated, and the application conditions have been given a more flexible and simplified structure.
With the published new application instruction entering into force as of October 1, various flexibilities have been provided to the business world.
Conditions and limits in the new period
According to the Central Bank's new instruction, the commitment not to buy foreign currency was lifted, and instead, a foreign exchange position condition was introduced, alongside an upper limit on the amount of foreign currency that can be sold.
Additionally, while supplier firms utilizing intermediary exporters are allowed to benefit from the support up to their own limits, the control mechanisms of intermediary banks have been strengthened.