Turkish residents were prohibited from carrying out the sale and leasing of moveable properties/ real estate, employment, service, and construction agreements in foreign currency or indexed to foreign currency with each other with a provision added to Decree No. 32 on the Protection of the Value of Turkish Currency on September 13, 2018. Although significant exceptions were enacted by Communiqué No. 2008-32/34, many transactions continue to fall under the scope of the prohibition.
Please note that the recent judgments of the Court of Cassation indicated that such prohibition is an economic public policy rule. Agreements contrary to the public policy shall be null and void (Turkish Code of Obligations, Article 27/1) and the relevant foreign law provisions shall not be applicable in case they are clearly against the public policy rules of Türkiye. In this respect, parties should determine whether an agreement is within the scope of the prohibition defined above.
To discuss the impact of the above further, please contact us.
Source by Lawyer Yalçın Okat.
