Notes about the “Free Market” prevailing in Turkey

Down below are some important points about the “FREE MARKET” in Turkey – shared by BARIS SOYDAN a prominent journalist on HALKTV web-page.

It is forbidden for citizens to send more than 50 thousand dollars abroad if they cannot submit documents about the reason.

It is forbidden for companies to send more than 500 thousand dollars (10 million TL) abroad if they cannot submit documents about the reason.

Banks are not allowed to buy foreign currency during the morning hours.

It is forbidden for companies to buy foreign currency from foreign currency trading platforms. They now have to make the foreign exchange transaction from the branches. The branch also seeks approval from the general directorate. This, in turn, leads to a serious prolongation of the process.

Companies that have foreign currency equivalent to TL 10 million (i.e. 530 thousand dollars) are prohibited from using TL loans from banks if this amount is more than 5 percent of their asset size or turnover.

It is forbidden for companies to buy foreign currency using loans from banks. If they have foreign currency debts, it is also forbidden.

It is forbidden to pay in foreign currency for any kind of shopping.

It is forbidden to pay cheques in foreign currency.

It is forbidden for foreign currency deposits in banks to be more than 40 percent of their total deposits.

Banks are prohibited from holding more than 5 percent of their equity in foreign currency.

Medium-sized and large companies are prohibited from using TL loans from banks if their exports are not 10 percent more than their imports (that is, if they are not net exporters).

Companies that cannot submit an invoice for the place where they spent the loan they received are prohibited from using loans.

It is actually forbidden for banks to provide commercial loans with more than 29 percent interest.

Factoring companies are also effectively prohibited from providing financing with an interest of more than 29 percent.

It is forbidden for companies to pay loan paybacks and leasing installments with a loan.

Companies with a turnover exceeding TL 15 million are prohibited from using loans without an independent audit report.

Turkish banks are actually prohibited from trading on the Swap (Money swap) market in London.

Exporters are prohibited from spending the foreign currency they earn from trade with abroad as they wish. They have to transfer 40 percent to the Central Bank since last year, and a total of 70 percent to banks.

It is forbidden for tourism businesses to spend the foreign currency they earn from trade with abroad as they want. They have to sell 40 percent of it to the Central Bank (since last year).

Free Market prevails in Turkey.

SOURCE: halktv.com.tr/makale/yasah-hemserim-dovize-yasak-uzerine-yasak-715540
(Translated)