The Communiqué on Supporting the Conversion of Companies' Foreign-Sourced Currency into Turkish Lira was published in Official Gazette No. 32085 of 26 January 2023.
The “Communiqué on Supporting the Conversion of Companies’ Foreign-Sourced Currency into Turkish Lira”, published in Official Gazette No. 32085 of 26 January 2023, sets out the procedures and principles for the support to be provided to companies where their foreign-sourced currency is sold to the Central Bank and converted into Turkish lira time deposit and participation accounts.
Under the text of the Communiqué, the foreign currency conversion support will be available to companies that sell their foreign-sourced currency to the Central Bank and to companies required to sell at least 40% of the foreign-sourced currency they bring into the country to the Central Bank.
1) Provision of conversion support on the sale of foreign-sourced currency to the Central Bank:
Where companies sell their foreign-sourced currency to the Central Bank through a bank, conversion support equal to 2% of the amount converted into Turkish lira at the conversion rate will be paid to companies giving an undertaking not to purchase foreign currency for a period to be determined by the Central Bank.
The conversion support calculated for undertakings obtained on such sales to the Central Bank through a bank will be transferred by the Central Bank to the bank concerned for payment to the company.
2) Provision of conversion support on the conversion of foreign-sourced currency into Turkish lira time deposit and participation accounts:
Under additional Article 1 of the Export Circular, from 18 April 2022 at least 40% of export proceeds converted into an export proceeds acceptance document or a foreign exchange purchase document must be sold to the bank issuing that document.
Under the Communiqué, where at least 40% of the foreign-sourced currency brought into the country has been sold to the Central Bank and the remaining part is converted at the conversion rate into Turkish lira time deposit and participation accounts, conversion support equal to 2% of the amount converted into Turkish lira at the conversion rate will be provided to companies giving an undertaking not to purchase more foreign currency than the amount sold to the Central Bank for a period to be determined by the Central Bank.
The Communiqué can be accessed through the link below.
Communiqué on Supporting the Conversion of Companies’ Foreign-Sourced Currency into Turkish Lira (No: 2023/5)