Conversion of Export Revenue

The Obligation to Convert 25% of Export Proceeds to the Bank Has Been Raised to 40%

The requirement to sell at least 25% of export proceeds linked to an Export Proceeds Acceptance Certificate (EPAC) or a Foreign Exchange Purchase Certificate (FEPC) to the bank issuing the EPAC or FEPC has been increased from 25% to 40% as of April 18, 2022.

On the other hand, for export transactions carried out or to be carried out to Ukraine and Russia, export proceeds may be accepted in Turkish Lira even if they are declared in foreign currency.

Pursuant to the instruction of the Turkish Ministry of Treasury and Finance dated December 31, 2021, and the additional Article 1 regulation added to the CBRT Export Circular, effective as of February 3, 2022, a requirement was introduced to sell at least 25% of export proceeds linked to an Export Proceeds Acceptance Certificate (EPAC) or a Foreign Exchange Purchase Certificate (FEPC) to the bank issuing the EPAC or FEPC.

With the instruction of the Turkish Ministry of Treasury and Finance dated April 15, 2022, a requirement has been introduced as of April 18, 2022, to sell at least 40% of export proceeds linked to an EPAC or FEPC to the bank issuing the EPAC or FEPC.

These amounts shall be sold by the bank to the Central Bank on the same day at the foreign exchange buying rate announced by the Central Bank and valid for the transaction day, and shall be transferred to the Central Bank's account held with the bank. The full equivalent of this amount shall be paid by the bank to the exporter in Turkish currency.

On the other hand, for export transactions carried out or to be carried out to Ukraine and Russia, export proceeds may be accepted in Turkish Lira even if they are declared in foreign currency.

The CBRT Export Circular has been issued based on Article 12, paragraph one of the Decree No. 32 on the Protection of the Value of Turkish Currency, put into effect by the Council of Ministers Decision No. 89/14391 dated August 7, 1989, and the Communiqué on the Decree No. 32 on the Protection of the Value of Turkish Currency (Regarding Export Proceeds) (Communiqué No: 2018-32/48) published in the Official Gazette No. 30525 dated September 4, 2018.