The Obligation to Use Turkish Currency in Securities Sales

Use of Turkish Currency in Securities Sales – Izmir Lawyer

Amendments to the Communiqué Regarding Decision No. 32 on the Protection of the Value of Turkish Currency, which was published and entered into force on April 19 ("the Communiqué") Circular No. 2022-32/66 Certain restrictions were imposed on the use of foreign currency in the market.

The aforementioned circular mandates that payments in movable property sales contracts must be made in Turkish currency. The term "movable property" as used in the circular should be understood to encompass all goods and items that do not fall under the definition of immovable property.

In this context, although the parties may agree on prices in foreign currency or indexed to foreign currency for the sale of securities, they are obliged to make the actual payment in Turkish lira.

The circular does not specify at what exchange rate the currency should be converted to Turkish lira on the payment date if a foreign currency has been agreed upon in the sale of securities. Therefore, unless otherwise agreed upon by the parties, the effective selling rate of the Central Bank of the Republic of Turkey on the maturity date should be used.

Another point to note here is that shares and share-like securities are also considered as contracts for the sale of securities and are subject to these restrictions. Therefore, payment for share certificates and bare share transfers must also be made in Turkish currency.

When examining the exceptions to the Communiqué, it can be stated that the use of Turkish currency is mandatory for securities denominated in foreign currency that entered circulation within the scope of the performance of securities sales contracts concluded before the effective date of the Communiqué, as well as for invoices issued before the effective date of the Communiqué and for precious metal and precious stone purchase and sale transactions carried out in foreign currency on the Precious Metals and Precious Stones Market of Borsa Istanbul A.Ş.

If the contrary is determined by the competent public institutions, for the year 2022, the parties to the contracts relating to the sale of securities in foreign currency will be subject to the following: Administrative fines ranging from ₺14,211.00 to ₺118,555.00 were imposed separately on each party. will be implemented.

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