Turkish
President Recep Tayyip Erdogan has issued a presidential decree canceling
foreign currency transactions in real estate sale and purchase contracts, leasing,
and movable properties and using the Turkish lira instead.
On Thursday, 13 September 2018, the Turkish official newspaper published the Presidential Decree "Amendment to decree No. 32 on the Protection of Turkish Currency Value, including Sales, Purchase and rental of movable properties contracts between all citizens on the Turkish territory and the resulting financial obligations won't determined in foreign currency or equivalents, except in limited cases decided by the Turkish Finance Ministry.
According
to the decree, which will be overseen by the Finance Ministry, the contracts
include the sale and purchase of real estate and movable property, the rental
of all properties, including transports and other services performed through
leasing.
The Turkish government's actions came within the context of strengthening domestic currency and reducing dependence on foreign currencies following the sharp decline of the Turkish lira against the USD in the latter period, losing about 40% of its value since the beginning of the year. "7.2 Turkish Liras/ USD in mid-August.
The
Turkish lira has recovered by recording its biggest rise against the USD in
recent weeks, reaching 6.33 Turkish Liras/ USD.