New Era in Foreign Currency Conversion Support from the Central Bank

The Central Bank of the Republic of Turkey has published the new implementation instruction for the support mechanism that encourages companies to convert their foreign-sourced foreign currency revenues into Turkish Lira. In the system taking effect on October 1, the foreign currency non-acquisition commitment was lifted, and criteria were linked to value-added and foreign currency position ratios.

New Era in Support Mechanism

A new practice is being introduced in the support mechanism that encourages companies to convert their foreign-earned currency revenues into Turkish Lira. The new system aims to facilitate access to support for companies contributing to exports through production and supply.

Statements from Minister Şimşek

Treasury and Finance Minister Mehmet Şimşek stated that steps have been taken to increase the effectiveness of the CBRT's foreign currency conversion support practice. Şimşek expressed that the main objective of the regulation is to make the support mechanism more effective and compatible with the actual economic activities of companies.

New Instruction and Effective Date

The CBRT's new implementation instruction has been published and will take effect as of October 1. In the new era where the foreign currency non-acquisition commitment is lifted, the conditions for benefiting from the support have been reorganized based on the company's value-added and foreign currency position ratio.

Value-Added and Position Condition

An upper limit has been introduced for the amount of foreign currency that can be sold within the scope of the support. Companies' annual foreign currency sales limit can be up to their value-added. Additionally, companies wishing to benefit from the support must ensure that their liquid foreign currency assets do not exceed 10 percent.