Turkey Prohibits Prices in Certain Agreements from Being Denominated in Foreign Currency

Presidential Decree no. 85 amending Decree No. 32 on the Protection of the Value of Turkish Currency (“Decree”) was published in the Official Gazette on 13 September 2018 and entered into force on the same day.

According to the Decree, the agreement price and any other payment obligation arising from sale and purchase agreements for movable and immovable assets; lease agreements for any movable and immovable assets, including vehicles and financial leasing; employment; service; and construction agreements, executed by and between persons residing in Turkey, may not be denominated in foreign currency or be indexed to foreign currency, except in circumstances determined by the Ministry of Treasury and Finance.

For full copy of the alert, please click here.