Foreign Currency

Turkey’s Central Bank Encourages Shift from Foreign Currency to Turkish Lira


In an attempt to stabilize the Turkish Lira and manage the economic implications of holding foreign assets within the country, the Central Bank of the Republic of Turkey (CBRT) has introduced significant amendments to the regulations concerning the conversion of foreign currency and gold accounts into Turkish Lira deposit and participation accounts.

From Foreign Currency and Gold to Turkish Lira

Published in the Official Gazette, these amendments reflect a shift from holding foreign currencies, specifically US dollars, Euros, and British pounds, along with gold, to Turkish Lira-based assets. The Communiqué Amending the Communiqué on Supporting the Conversion from Turkish Lira Deposit and Participation Accounts and the Communiqué Amending the Communiqué on Supporting the Conversion from Gold Accounts to Turkish Lira Deposit and Participation Accounts are now available for public consumption.

A Shift for Domestic Real and Legal Persons

According to these new amendments, domestic real persons have until January 31, 2024, to convert their foreign currency deposits and gold accounts into Turkish Lira. The amendments have set different deadlines for domestic legal persons. They have until June 30, 2023, to convert their currency deposits, and until December 31, 2021, for gold accounts conversion.

Converting at the Requested Rate

The CBRT has announced that these conversions, whether they are foreign currency deposits, participations in banks, or gold accounts, can take place at a specified conversion rate, but only if requested by the account owner. This request-based conversion offers flexibility to account holders, allowing them to decide when and at what rate they want to convert their foreign currency or gold accounts into Turkish Lira.

These changes, implemented by the CBRT, illustrate a strategic move towards economic stability in Turkey, as they redirect the focus from foreign assets to a stronger, more consolidated national currency.





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