Turkey has introduced important changes to its financial support mechanism for companies converting foreign-sourced foreign currency into Turkish lira.
The Central Bank of the Republic of Türkiye (CBRT) published Communiqué No. 2026/11 in the Official Gazette (Resmî Gazete) No. 33327 on 1 August 2026.
The amendments extend the enhanced foreign currency conversion support and introduce new eligibility conditions for companies benefiting from the scheme.
What Is the Foreign Currency Conversion Support?
Turkey’s foreign currency conversion support mechanism provides financial support to eligible companies that bring certain foreign-sourced foreign currency into Turkey and sell it to the Central Bank through an intermediary bank.
The scheme is particularly relevant for Turkish companies generating revenues from abroad, including certain exporters and service providers receiving payments from non-residents.
Under the general framework, eligible companies may receive financial support calculated on the amount of foreign currency converted into Turkish lira.
3% Conversion Support Extended Until January 2027
One of the most important changes introduced in August 2026 concerns the enhanced support rate.
The standard foreign currency conversion support rate is 2% of the amount converted into Turkish lira.
However, the temporary application of an increased 3% support rate has been extended until 31 January 2027.
This means that eligible companies converting qualifying foreign-sourced foreign currency into Turkish lira may continue to benefit from the enhanced 3% support during the extended period.
For internationally active companies, this incentive can therefore provide an additional financial benefit when converting qualifying foreign currency revenues into TRY.
New Foreign Currency Position Requirement
The amendments also introduce an important change to the eligibility conditions.
Previously, companies benefiting from the support were required to undertake not to purchase foreign currency for a period determined by the Central Bank.
Under the revised framework, this requirement is removed.
Instead, eligibility will depend on the company’s foreign currency position ratio remaining within the limits determined by the Central Bank.
This represents an important change in the way companies’ eligibility for the conversion support will be assessed.
The new framework therefore places greater emphasis on the company’s overall foreign currency position rather than imposing a general restriction on purchasing foreign currency.
Foreign Currency Cannot Be Returned After Conversion
The amended rules also clarify that foreign currency sold to the Central Bank under the support mechanism cannot subsequently be returned to the company.
Companies should therefore carefully assess their foreign currency and liquidity requirements before participating in the scheme.
This may be particularly important for businesses that have significant expenses or financial obligations denominated in foreign currencies.
New Rules for Group Companies
The amendments introduce the concept of company control into the support framework.
For these purposes, control may arise where a company directly or indirectly holds at least:
- 50% of another company’s shares,
- 50% of its voting rights,
- the right to appoint at least 50% of the members of its board, or
- control over at least 50% of the board members.
This is particularly relevant for corporate groups and multinational organisations operating through several entities in Turkey.
Companies belonging to the same group should therefore consider the new control rules when assessing their eligibility for the support.
Increased Controls and Sanctions
The revised framework also strengthens the control and verification mechanisms associated with the foreign currency conversion support.
Companies may be required to provide information and documentation allowing the authorities and intermediary banks to verify compliance with the applicable conditions.
If a company receives support improperly or fails to comply with the relevant requirements, the amounts concerned may be recovered and additional sanctions may apply.
Businesses using the mechanism should therefore maintain appropriate documentation concerning the source of foreign currency, conversion transactions and compliance with the applicable Central Bank requirements.
When Do the New Rules Apply?
The extension of the enhanced 3% conversion support until 31 January 2027 entered into force on the publication date of the Communiqué.
Most of the other amendments introduced by Communiqué No. 2026/11 will enter into force on 1 October 2026.
Companies considering the scheme should therefore distinguish between the extension of the support rate and the new eligibility and compliance framework.
What Does This Mean for International Companies in Turkey?
The changes may be relevant for international businesses operating in Turkey and generating foreign currency revenues.
Companies should assess:
- Whether their foreign currency revenues qualify under the scheme
- The amount of foreign currency they intend to convert into TRY
- Their foreign currency position
- Their liquidity requirements in foreign currencies
- Their corporate structure and relationships with controlled companies
- The documentation required by intermediary banks
- The financial benefit of the 3% conversion support
The decision to convert foreign currency into Turkish lira should nevertheless be considered within the company’s broader treasury, cash-flow and foreign exchange strategy.
Doing Business in Turkey
Turkey’s foreign exchange regulations and incentive mechanisms can have a significant impact on companies conducting cross-border business.
International companies operating in Turkey should therefore monitor changes affecting foreign currency transactions, banking requirements, taxation, employment costs and corporate compliance.
Azkan Group supports international companies establishing and managing their operations in Turkey, including company formation, accounting, payroll, HR administration and Employer of Record services.
For foreign businesses entering the Turkish market, understanding the local regulatory and financial environment is an important part of maintaining compliant and efficient operations.
