Supreme Court’s Critical Decision Concerning Currency Control Laws

The decision of the 12th Civil Chamber of the Supreme Court of Appeals dated October 6, 2022, with File No. 2022/6469 and Decision No. 2022/9954 (the “Decision“), includes essential remarks regarding the legal consequences of the violation of such ban.

What does the Decision signify?

The Decree No. 32 and the Communiqué No. 2008-32/34 on the Decree No. 32 on the Protection of the Value of the Turkish Currency set forth a ban on foreign currency denominated and FX-indexed payments for employment, service, construction, sale and rental agreements between Turkish residents. The Law No. 1567 on the Protection of the Value of the Turkish Currency (the “Currency Protection Law“), which is