Foreign Currency Back in Play: Türkiye Re‑Allows FX Payments in Domestic Sales of Goods (Vehicle Sales Excluded)
The Turkish Ministry of Treasury and Finance has announced a significant policy change that reintroduces the possibility of using foreign currency and foreign-currency-indexed payments for sales contracts for goods between residents of Türkiye. Published in the Official Gazette on 6 March 2025, this amendment lifts the prohibition on Foreign Exchange (“FX”)-based payment terms, except for vehicle sales, which remain subject to the previous restriction.
The FX restrictions introduced by the Communiqué No. 2018-32/51 issued on 13 September 2018 had prevented Turkish parties from agreeing prices or payment obligations in currencies such as the euro (EUR), US dollar (USD) or British pound (GBP), even for entirely domestic transactions. Consequently, Turkish buyers and sellers could not structure their sales of goods contracts in foreign currency or FX-indexed terms (unless exempt). The new amendment removes this prohibition for all sales of goods between Turkish residents, except for vehicle-related transactions, thus restoring a level of contractual freedom unavailable for several years. The Ministry’s decision represents a significant relaxation of Türkiye's domestic FX framework. The change took effect on 6 March 2025, the date of publication in the Official Gazette.
Why this matters?
This change restores domestic commercial flexibility by enabling Turkish counterparties to price and settle contracts in foreign currency when their cost structures or market benchmarks are influenced by foreign exchange dynamics. This is particularly relevant in sectors that rely on imported inputs or commodity-linked pricing. With this renewed freedom, companies can better align their contract terms with their actual economic exposure, strengthen their risk management practices and reduce the operational issues caused by currency volatility in domestic supply chains.
Implementation steps for businesses
Map contracts: Review active sales agreements for goods (excluding vehicle transactions) to identify those currently prohibiting FX terms.
Assess exposure: Determine where costs, market benchmarks or financing arrangements are linked to foreign currency, and evaluate whether FX or FX-indexed pricing would now be advantageous.
Amend carefully: Update pricing clauses, payment mechanics, FX conversion provisions and risk-allocation mechanisms, such as rate sources, cut-off times and tolerance thresholds.
Coordinate finance and tax: Ensure that invoicing, accounting and tax treatments align with any new FX-based structures and adjust treasury or hedging policies where necessary.
Update templates: Revise contract templates and internal playbooks to reflect the renewed flexibility while maintaining the vehicle-sale exception.
For further information on how this amendment may impact your contracts or business practices, please contact your CMS partner or local CMS expert: Dr. Döne Yalçın.
