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Foreign exchange transactions and exchange rates in Türkiye

Dive into the processes foreign exchange transactions and exchange rates in Türkiye.
Turkish Business World 25 February 2025 2 minutes read

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Foreign Exchange Transactions and Exchange Rates in Türkiye (2024-2025)

For international entrepreneurs considering doing business in Türkiye, understanding the dynamics of the foreign exchange market is crucial. The Central Bank of the Republic of Türkiye (TCMB) has recently published its 2025 monetary policy plan, which provides insights into the country’s foreign exchange market and policies. This article will help international investors navigate the evolving landscape of exchange rates and foreign currency transactions in Türkiye.

Foreign Exchange Policy

TCMB’s 2025 Monetary Policy

The TCMB’s 2025 monetary policy outlines that the central bank does not set a specific target for exchange rates. The TCMB does not engage in foreign exchange purchase or sale transactions to influence exchange rate levels. Instead, foreign exchange rates will continue to be determined based on supply and demand in free market conditions.

Forex Market Supervision

To ensure an efficient foreign exchange market and support healthy price formations, the TCMB will closely monitor foreign exchange rate developments and related risk factors. The central bank will take necessary measures and use relevant tools to maintain market stability.

Current Exchange Rates

As of February 2025, the current exchange rates in Türkiye are as follows:

  • USD/TRY: buying 36.4087, selling 36.4339
  • EUR/TRY: buying 38.1115, selling 38.1549
  • GBP/TRY: buying 45.9250, selling 46.1552

These rates reflect the market conditions and are subject to change based on economic trends and supply-demand dynamics.

Other Foreign Exchange Transactions

Reserve Accumulation

In 2025, the TCMB will continue purchasing domestically produced gold in exchange for Turkish lira as part of its reserve accumulation strategy. Additionally, it may conduct location swap operations with banks based on market conditions.

Foreign Exchange Liquidity

The TCMB will maintain foreign exchange liquidity support for banks through its Foreign Exchange Deposit Market. Banks will continue to benefit from approximately $50 billion in total limits with one-week and one-month maturities.

Conclusion

For international investors and entrepreneurs, understanding Türkiye’s foreign exchange policies and market conditions is essential when doing business in the country. Türkiye’s exchange rates will continue to be determined by free market dynamics, with the TCMB ensuring market stability without direct intervention. Entrepreneurs should stay informed about exchange rate fluctuations and liquidity measures to make well-informed financial decisions.

For the most up-to-date exchange rates and monetary policies, visit the official resources: current exchange rates or the TCMB official website.

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