32 Sayılı Karar Nedir? 32 Sayılı Karar Hakkında Kapsamlı Bilgi
(Decree: No. 32) This decision was made in 1989 under the Law No. 1567 on the Protection of the Value of Turkish Currency to completely liberalize foreign exchange control and lift restrictions on capital movements. Beginning in 1983, Turkey gradually liberalized its foreign trade in goods and services, and with this decree, capital movements were also freed. The contents of the decisions were announced on August 8 and August 9, and published in the Official Gazette on August 11, 1989. This significant resolution has been historically referred to as the “August 8-9, 1989 Decisions.”
Key Articles: The most critical articles of the decree were as follows: “Article 4- a) The import of foreign currency into the country and the export of foreign currency from the country is free. b) Residents of Turkey are free to keep foreign currency with them, purchase foreign currency from banks, authorized institutions, PTT, precious metal intermediary institutions, and authorized organizations abroad, sell foreign currency to these entities, hold foreign currency in foreign currency accounts opened at banks, use it effectively, and save it through banks both domestically and abroad. Article 12- (2) The net profit, dividends, sales, liquidation, and compensation amounts arising from the activities and transactions of foreign investors in Turkey can be freely transferred abroad through banks. Article 13- (1) Residents of Turkey are free to establish companies, join partnerships, and open branches abroad for the purpose of investment or commercial activities, by exporting cash capital through banks and non-cash capital in accordance with customs legislation.”
Consequences of the Decision: In subsequent years, short-term portfolio investments coming to Turkey taking advantage of high interest rates facilitated a decrease in foreign exchange rates and partially stimulated the economy. However, this capital returned to its home country whenever there was a disruption in the economic, political, or geopolitical balance in the region. Following the outflow of foreign currency, interest rates were raised to prevent further increases in exchange rates. Due to the rise in exchange rates and interest rates, the economy experienced recession in 1991 and 1998, and crises in 1994 and 1999. The extreme volatility of exchange rates could only be mitigated after the transition to a floating exchange rate system in February 2001. The decision of Decree No. 32 has been criticized for being made during a period of economic recession and high inflation in 1989. The lack of sufficient awareness among politicians, the business community, and the public about the risks of globalization also complicated efforts to mitigate the negative outcomes of the decree.
