IMPLEMENTATION INSTRUCTION REGARDING THE COMMUNIQUÉ ON SUPPORTING THE CONVERSION OF COMPANIES’ FOREIGN-SOURCED FOREIGN CURRENCY INTO TURKISH LIRA
**GENERAL DIRECTORATE OF TREASURY AND CORPORATE OPERATIONS**
**Date: 24 February 2025**
## Purpose and Scope
**ARTICLE 1 –** (1) The purpose of this Implementation Instruction is to regulate the implementation details of the Communiqué No. 2023/5 on Supporting the Conversion of Companies’ Foreign-Sourced Foreign Currency into Turkish Lira.
## Legal Basis
**ARTICLE 2 –** (1) This Implementation Instruction has been prepared on the basis of the Communiqué No. 2023/5 on Supporting the Conversion of Companies’ Foreign-Sourced Foreign Currency into Turkish Lira.
## Definitions and Abbreviations
**ARTICLE 3 –** (1) For the purposes of this Implementation Instruction:
**a) Bank:** Deposit banks and participation banks as defined in Article 3 of Banking Law No. 5411 dated 19 October 2005,
**b) Foreign exchange conversion support:** The support to be provided by the Central Bank to companies that sell their foreign-sourced foreign currency to the Central Bank or bring their foreign-sourced foreign currency into Türkiye and convert it into Turkish lira-denominated time deposit or participation accounts within the scope of Communiqué No. 2021/14 on Supporting the Conversion into Turkish Lira Deposit and Participation Accounts,
**c) Conversion exchange rate:** The most recently announced foreign exchange buying rate published by the Central Bank at 10:00, 11:00, 12:00, 13:00, 14:00 and 15:00, as of the time at which companies’ foreign-sourced foreign currency or the foreign currency held in their foreign exchange deposit accounts and foreign currency-denominated participation fund accounts is converted into Turkish lira,
**ç) Companies:** Legal entities with a registered office in Türkiye, excluding banks and other financial institutions designated by the Central Bank,
**d) Central Bank:** The Central Bank of the Republic of Türkiye,
**e) (Amended: 10 June 2024, 9 July 2024, 15 October 2024 and 24 February 2025) Foreign-sourced foreign currency:** Foreign currency export revenues of companies, excluding revenues arising from the export of all precious metals defined in subparagraph (j) of Article 2 of Decision No. 32 on the Protection of the Value of Turkish Currency, published in the Official Gazette dated 11 August 1989 and numbered 20249; foreign currency brought into Türkiye from foreign exchange-earning service revenues obtained from persons resident abroad, including foreign currency earned in return for services provided domestically to foreign persons; and foreign currency revenues arising from sales made abroad by companies operating in free zones.
## Foreign Currencies Eligible for Transactions
**ARTICLE 4 –** (1) Transactions to be carried out within the scope of this Implementation Instruction shall be limited to the foreign currencies that are subject to purchase and sale by the Central Bank.
(2) The foreign currencies that may be sold by banks to the Central Bank are United States dollars, euros and pounds sterling. For transactions conducted in other foreign currencies, the relevant amounts shall be converted by the bank into United States dollars, euros or pounds sterling and subsequently sold to the Central Bank.
## Provision of Foreign Exchange Conversion Support for Foreign-Sourced Foreign Currency Sold to the Central Bank
**ARTICLE 5 –** (1) **(Amended: 14 March 2023, 9 July 2024 and 15 October 2024)** Provided that the foreign currency falls within the definition of foreign-sourced foreign currency set out in subparagraph (e) of the first paragraph of Article 3 of this Implementation Instruction, foreign exchange conversion support equal to 2% of the amount converted into Turkish lira at the conversion exchange rate shall be paid by the Central Bank to companies that undertake not to purchase foreign currency for a period of one month when the following foreign currency amounts are sold to the Central Bank through a bank:
* Foreign currency export proceeds that exporting companies are required to sell to the Central Bank pursuant to Additional Article 1 of the Export Circular dated 16 January 2020,
* Foreign currency received for foreign exchange-earning services within the scope of the section entitled “A) Foreign Exchange-Earning Transactions (Article 20)” of the Invisible Transactions Circular No. 2000/YB-4 dated 13 January 2000, and
* Foreign currency arising from sales made abroad by companies operating in free zones.
(2) **(Amended: 10 June 2024)** Repealed.
(3) United States dollar, euro and pound sterling accounts shall be opened with banks in the name of the Central Bank. Foreign currency purchased by a bank in relation to the requests collected by it shall be reported to the Central Bank by 17:00 on business days and by 13:30 on half business days and shall be transferred collectively to the relevant accounts. Transactions reported after these hours shall be processed on the following business day.
(4) Foreign currency transferred by the bank to the Central Bank’s account shall be purchased by the Central Bank at the conversion exchange rate.
(5) **(Amended: 10 June 2024)** The Turkish lira amounts corresponding to the foreign currency purchase transactions and the foreign exchange conversion support amounts calculated for the undertakings obtained under the first paragraph of this Article shall be transferred by the Central Bank, free of charge, to the bank’s Electronic Funds Transfer centre. For transactions that cannot be completed by 17:30, the relevant Turkish lira amounts shall be transferred to the bank’s required reserve account held with the Central Bank.
(6) Receipts relating to the foreign currency transferred to the Central Bank’s account and information regarding the converted amounts shall be reported electronically to the Central Bank on the same day, in accordance with the notification form provided in Annex A.
(7) For foreign currency amounts to be transferred to the Central Bank with a value date of one day under this Implementation Instruction, the following explanations shall be entered in the foreign currency transfer instruction sent by the bank to its correspondent:
* In field 21 of the MT202 message: **“EXCHANGE SUPPORT”**
* In field 72: **“/BNF/ BANK NAME FOREIGN EXCHANGE SUPPORT IBAN: ...............”**
The relevant IBAN shall be the IBAN of the account notified by the Central Bank for such transactions.
* In field 58 of the MT202 message: **“TCMBTR2A”**
(8) **(Amended: 16 December 2024)** Companies using loans in accordance with Additional Article 4 of the Implementation Instruction on Rediscount Loans for Export and Foreign Exchange-Earning Services or the Implementation Instruction on Rediscount Financing for Export and Foreign Exchange-Earning Services shall not be provided with foreign exchange conversion support under this Article throughout the term of the relevant loan.
## Conversion of Foreign-Sourced Foreign Currency into Turkish Lira-Denominated Time Deposit or Participation Accounts
**ARTICLE 6 –** **(Amended: 10 June 2024)** Repealed.
## Provisions Concerning the Undertaking Not to Purchase Foreign Currency
**ARTICLE 7 –** (1) Undertakings not to purchase foreign currency under this Implementation Instruction shall be made by submitting to the relevant bank a written undertaking prepared and signed by the relevant company in accordance with the template provided in Annex C. The bank shall retain such undertakings in its records. Upon request, a copy of the undertaking shall be submitted to the Central Bank.
(2) Banks shall verify whether the undertaking not to purchase foreign currency has been fulfilled.
(3) Companies found to have failed to fulfil their undertaking not to purchase foreign currency under this Implementation Instruction shall be reported to the Central Bank by the relevant bank. The date of this notification shall be deemed to be the date on which the breach of the undertaking was identified.
(4) Foreign currency purchases made by other persons in the name or on behalf of a company that has provided an undertaking shall be deemed a breach of the undertaking not to purchase foreign currency.
(5) **(Amended: 14 March 2023, 30 November 2023 and 15 October 2024)** The following transactions shall not be considered a breach of the undertaking:
* Foreign currency purchases made by companies that have undertaken not to purchase foreign currency under this Implementation Instruction, provided that such purchases do not exceed 10% of the amount subject to the undertaking,
* Foreign currency purchases made by companies holding conversion deposit or participation accounts using the balance available at the maturity of such accounts, where the purchase transaction is subsequently cancelled or the foreign currency is resold to the intermediary bank within five business days, and
* Arbitrage transactions between foreign currencies where neither side of the transaction is Turkish lira.
(6) The recoverable foreign exchange conversion support amount shall be calculated using the higher of the following exchange rates:
* The foreign exchange buying rate announced by the Central Bank at 15:00 on the date on which the breach of the undertaking is identified, or
* The conversion exchange rate used when the foreign exchange conversion support was paid.
Interest shall be added to this amount for the period between the conversion date and the date on which the breach is identified. Such interest shall be calculated using the highest overnight lending interest rate announced by the Central Bank and applicable on the date of identification. The resulting amount shall be collected by the banks and transferred to the Central Bank.
(7) The company shall be responsible for any Banking and Insurance Transactions Tax arising from the amount calculated for recovery from the company.
(8) The relevant bank shall calculate and collect the recoverable amount from the company and transfer it to the account notified by the Central Bank no later than three business days following the notification date.
(9) **(Amended: 10 June 2024)** Applications by companies that have failed to comply with their undertaking not to purchase foreign currency for loans funded by the Central Bank and support payments under this Implementation Instruction shall not be accepted until the sanction amount specified in the sixth paragraph of this Article has been paid.
Companies that have improperly benefited from foreign exchange conversion support or made false declarations to the Central Bank or banks shall not be permitted to benefit from foreign exchange conversion support. Applications by such companies for loans from the Central Bank shall not be accepted for a period of three years.
(10) Undertakings provided by group companies shall also be binding upon their parent companies.
## Other Provisions
**ARTICLE 8 –** (1) All costs relating to foreign currency transfers made by a bank to the Central Bank shall be paid by the Central Bank in Turkish lira by the last business day of the following month, based on the MT291 message sent collectively by the bank on a monthly basis and using the foreign exchange buying rate announced by the Central Bank at 11:00 on the payment date.
(2) When a Turkish lira deposit or participation conversion account is opened, the account holder shall be informed by the bank of the conditions applicable to withdrawals before maturity.
(3) No amendments may be made to the interest rate, maturity or similar contractual terms of Turkish lira deposit or participation conversion accounts.
(4) **(Amended: 15 October 2024)** Foreign currency brought into Türkiye by Foreign Trade Capital Companies and Sectoral Foreign Trade Companies under an intermediated export agreement shall be sold on behalf of the companies supplying products to the relevant Foreign Trade Capital Company or Sectoral Foreign Trade Company. In such cases, for the purposes of this Implementation Instruction, the foreign currency sale shall be deemed to have been made by the supplier company.
(5) Where excess amounts have been transferred to a bank due to errors originating from the bank or discrepancies in notifications, a penalty calculated at the Central Bank’s policy interest rate shall be applied for the period during which the excess amount remained transferred. Furthermore, where the excess amount has been credited to the bank’s required reserve account, that amount shall not be counted towards the fulfilment of required reserve obligations.
(6) Banks may carry out conversions through mobile or internet banking from foreign exchange deposit accounts and foreign currency-denominated participation fund accounts after 17:00 on business days, after 13:30 on half business days and on public holidays, using the most recently announced foreign exchange buying rate published by the Central Bank on the last business day.
Transactions carried out by account holders after 17:00 on business days, after 13:30 on half business days or on public holidays shall be included in the notifications submitted by banks to the Central Bank by 17:00 on the following business day or by 13:30 where the following business day is a half business day.
(7) Companies benefiting from foreign exchange conversion support under this Implementation Instruction may not transfer Turkish lira or foreign currency abroad for the purpose of derivative transactions or the purchase and sale of foreign currency or precious metals during the period covered by their undertaking. Conversion deposit and participation accounts opened under this Instruction may not be used in derivative transactions.
(8) Banks shall perform the necessary checks to ensure that all transactions carried out under this Implementation Instruction comply with national and international standards concerning the prevention of money laundering and terrorist financing and that such transactions comply with this Implementation Instruction. Where a breach is identified, the bank carrying out the transaction shall immediately notify the Central Bank.
(9) Banks shall determine whether the foreign currency to be sold to the Central Bank under this Implementation Instruction is foreign-sourced.
(10) Further details regarding the operational processes under this Implementation Instruction shall be determined by the Central Bank.
(11) **(Amended: 13 March 2024)** Companies found to have improperly benefited from foreign exchange conversion support under this Implementation Instruction or to have made false declarations to the Central Bank or intermediary banks shall be subject to the sanctions set out in the sixth, seventh, eighth and ninth paragraphs of Article 7 of this Implementation Instruction. No new foreign exchange conversion support payments shall be made to such companies.
(12) **(Amended: 10 June 2024 and 9 July 2024)** Where a bank other than the bank specified in box 28 of the Customs Declaration, entitled “Financial and Banking Data,” or box 10 of the Free Zone Transaction Form acts as an intermediary for the foreign exchange conversion support transaction, the bank carrying out the transaction may not sell foreign currency to the Central Bank under this Implementation Instruction without first obtaining confirmation from the bank specified in box 28 of the Customs Declaration or box 10 of the Free Zone Transaction Form that no previous support payment has been made for the amount concerned.
(13) **(Amended: 10 June 2024)** Applications for support payments in relation to foreign-sourced foreign currency brought into Türkiye by companies as advance export proceeds shall be processed after the relevant customs declarations have been submitted to the intermediary bank. Copies of the customs declarations submitted and checked by the intermediary bank shall be retained electronically by the bank acting as intermediary for the transaction.
(14) **(Amended: 10 June 2024)** A Cash Declaration Form must have been issued in order for foreign exchange conversion support to be requested in connection with the sale of export proceeds brought into Türkiye in cash.
Companies wishing to benefit from foreign exchange conversion support using a Cash Declaration Form may sell their foreign currency to the Central Bank only through the bank specified in box 28 of the Customs Declaration, entitled “Financial and Banking Data.”
The intermediary bank shall perform the checks required under this Implementation Instruction in relation to the relevant amount. Banks that fail to fulfil their control obligations shall be jointly and severally liable with the relevant companies for all losses and penalties that may arise in connection with foreign exchange conversion support payments for which a Cash Declaration Form has been submitted.
(15) **(Amended: 10 June 2024 and 9 July 2024)** Foreign exchange conversion support may not be obtained unless the following documents are submitted to the intermediary bank:
* A customs declaration for foreign currency export proceeds,
* An invoice for foreign currency received in return for foreign exchange-earning services, and
* A Free Zone Transaction Form approved by the relevant Free Zone Directorate for foreign currency arising from sales made abroad by companies operating in free zones.
Information contained in the Free Zone Transaction Forms, invoices and customs declarations submitted and checked by the intermediary bank shall be retained electronically by the bank acting as intermediary for the transaction.
(16) **(Amended: 15 October 2024)** Companies may also benefit from foreign exchange conversion support under this Implementation Instruction on the basis of an Electronic Commerce Customs Declaration, or **ETGB**.
Where an ETGB is submitted, the company shall provide, in addition to the original ETGB, a written declaration stating that the sale of the relevant amounts shall be carried out through a single bank for a period of three months.
During this period, the bank carrying out the transaction shall also obtain confirmation on at least one occasion that no transaction has been carried out through any other bank.
## Entry into Force
**ARTICLE 9 –** (1) This Implementation Instruction shall enter into force on the date of its publication.
## Execution
**ARTICLE 10 –** (1) This Implementation Instruction shall be implemented by the Governor of the Central Bank of the Republic of Türkiye.
Source: Central Bank of the Republic of Türkiye
Link: Link to the Relevant Communique — included in the form.