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COMMUNIQUE: Amendment to Communique on the Decree No. 32 on the Protection of the Value of Turkish Currency!

July 16, 2019

GENERAL

Communique Amending the Communique on the Decree No. 32 on the Protection of the Value of Turkish Currency (“Communique”) has been published on the Official Gazette dated July 13, 2019 and numbered 30830. According to the subject Communique, subclause (b) of the first clause of the Article 8 of the Communique on the Decree No. 32 on the Protection of the Value of Turkish Currency (Communique No. 2008-32/35), published in the Official Gazette dated May 29, 2008 and numbered 26890, has been repealed.

DECREE ON THE PROTECTION OF THE VALUE OF TURKISH CURRENCY

With the Decree No. 32 on the Protection of the Value of Turkish Currency (“Decree”), in summary, it is aimed to determine the value of Turkish currency against foreign currencies, to regulate and set limiting principles. Import-export transactions, foreign currency and the documents representing foreign exchange, foreign exchange transactions, precious metals, gemstones and valuable goods related to the arrangement of transactions are included within the scope of this Decree.

COMMUNIQUE ON THE DECREE (Communique No. 2008-32/35)

With the Communique on the Decree No. 32 on the Protection of the Value of Turkish Currency (Communique No. 2008-32/35) (“Principal Communique”), in accordance with the Decree, the issues left to the Ministry of Treasury and Finance are determined by the subject Principal Communique. With the Principal Communique, issues such as foreign exchange assets, foreign capital export and loans are also regulated in order to protect the value of Turkish currency.

AMENDMENT BROUGHT BY THE COMMUNIQUE

With the regulation introduced by the Communique, amendments were made regarding the opening of gold, silver and platinum loans. According to the amendments in question, about the delivery of gold, silver and platinum in exchange for the depository accounts, or gold, silver or platinum purchased by banks, or payment of their equivalent in Turkish lira to the resident customer in Turkey, or in Turkish Lira or foreign currency to the resident customer abroad, the possibility of providing gold, silver and platinum loans to residents in Turkey or abroad with a minimum amount of USD 5 million and an average maturity over 1 year has been terminated.

EFFECTIVE DATE

This Communique shall enter into force on July 13, 2019, with publication and the provisions of the Communique shall be executed by the Ministry of Treasury and Finance.

The full text of the Communique Amending the Communique on the Decree No. 32 on the Protection of the Value of Turkish Currency published in the Official Gazette numbered 30830 and dated July 13, 2019 can be accessed here.

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