Türkiye published further significant amendments to the Decree No. 32 on the Protection of the Value of the Turkish Currency in the Official Gazette.
These amendments include notable regulations affecting cash transfers abroad, derivative transactions, and guarantees in foreign currency.
Increased Limit for Cash Transfers Abroad
Previously, the Decree No. 32 required individuals carrying cash amounts exceeding 25,000 Turkish Lira (approximately EUR 610 at the date of this alert) abroad to complete a cash declaration form. Under the amended regulation, this limit has been substantially increased to 185,000 Turkish Lira (approximately EUR 4500 at the date of this alert), simplifying procedures for individuals traveling internationally with larger sums of cash.
It should be noted that these thresholds apply specifically to cash amounts in Turkish Lira, whereas the limit for taking foreign currency abroad remains at EUR 10,000 or its equivalent in other foreign currencies.
Clarification on Derivative Transaction Requirements
Another key amendment resolves the ongoing ambiguity regarding whether derivative transactions must be conducted through dealer-brokers. The new regulation clearly stipulates that Turkish residents engaging in derivative transactions abroad must use banks or intermediary institutions authorized by Türkiye's Capital Markets Board ("CMB").
However, the amendment introduces an important exemption: Turkish residents may directly conduct derivative transactions with foreign financial institutions without intermediary assistance, provided these transactions are initiated solely at their own discretion, without any targeted marketing or solicitation by such foreign entities. Despite this flexibility, all transaction-related payments must still be processed via Turkish banks.
Additionally, leveraged transactions and derivative transactions governed under the same legal framework continue to require CMB-authorized intermediaries. Transferring funds abroad related to such leveraged transactions remains explicitly prohibited.
New Provisions for Foreign Currency Guarantees and Sureties
Under the amended decree, direct shareholders or group companies of Turkish resident borrowers who obtain foreign currency loans from Turkish banks and financial institutions can now issue foreign currency guarantees and sureties to secure these loans.
Overall, these amendments reflect Türkiye’s ongoing efforts to provide greater flexibility in financial practices while maintaining stringent controls over currency stability and transactional transparency. Businesses and individuals impacted by these updates are advised to thoroughly assess their current contractual commitments and compliance practices.
For further clarification or assistance regarding how the amendments may affect your business operations, please feel free to contact us.
