ISTANBUL — Türkiye will double the foreign currency conversion support provided to companies converting their foreign exchange earnings into Turkish lira, Trade Minister Ömer Bolat said, with the new arrangement set to take effect on October 1.
Speaking at the IFCO Istanbul Fashion and Apparel Fair organized by the Istanbul Apparel Exporters’ Association (İHKİB), Bolat said the new system would prioritize labor-intensive industries and sectors that generate higher value-added production and support employment.
Support to Increase Twofold
Bolat said the foreign currency conversion incentive, introduced to ease companies’ exchange-rate-related difficulties, would be increased significantly under the new framework.
“The foreign currency conversion premium will be implemented with a twofold increase, prioritizing labor-intensive sectors and production with higher added value,” Bolat said.
The program was initially introduced with a 2% support rate and has been applied at 3% over the past year and a half. The current arrangement was extended for another six months as of August, according to Bolat.
New Rules to Focus on Value Added
The Central Bank of the Republic of Türkiye (CBRT) has also introduced changes aimed at making the foreign currency conversion support more targeted.
Under the revised framework, companies’ eligibility will take into account factors including value added, profitability and labor costs. Firms will face limits on the amount of foreign currency they can sell under the support program based on their value-added contribution.
Intermediary exporters will also be able to carry out foreign currency conversion transactions on behalf of high-value-added suppliers after reaching their own value-added-based limits. In such cases, the support payment can be transferred directly to the supplier’s account.
The new value-added-based rules are scheduled to take effect on October 1, 2026.
Policy Aims to Support Exporters and Employment
The changes are part of Türkiye’s broader efforts to encourage companies to convert foreign currency revenues into lira while supporting exporters facing exchange-rate pressures.
By directing greater support toward labor-intensive and higher-value-added sectors, the government aims to strengthen production, employment and export competitiveness while continuing to build foreign-exchange reserves.
Source: Patronlar Dünyası/ Prepared by: İlayda Gök