🇹🇷 Which Exchange Rate Should You Use? A Guide to Foreign Exchange Operations 2026
In Türkiye, there is a legal distinction between "Efektif" (cash) and "Döviz" (non-cash), and different Central Bank (TCMB) rates apply to different taxes.
We review the rules in accordance with the Tax Procedure Law (VUK).
1. GLOSSARY OF TERMS (THIS IS IMPORTANT)
Under Turkish law, there are two concepts of foreign currency:
- 💵 Efektif: Physical banknotes only (cash).
- 💳 Döviz: A general concept encompassing non-cash wire transfers, bank accounts, checks, and promissory notes.
Rule: Efektif is always cash. Döviz is everything else.
2. CHEAT SHEET: WHICH RATE TO USE?
Below is a list of transactions and the corresponding Central Bank (TCMB) exchange rate:
- 🔹 Cash currency valuation (Cash on hand)
- 👉 Rate: Efektif Alış (Effective Buying)
- Note: If this rate is not published, use Döviz Alış.
- 🔹 Valuation of currency in bank accounts, Accounts Receivable / Payable
- 👉 Rate: Döviz Alış (Forex Buying)
- 🔹 Invoicing (Fatura)
- 👉 Rate: Döviz Alış (Forex Buying)
Note: Applies if the contract does not stipulate its own fixed exchange rate.
- 🔹 Stamp Tax (Damga Vergisi) — ATTENTION!
- 👉 Rate: Döviz Satış (Forex Selling)
- Note: This is an exception! The selling rate is used to calculate tax on contracts.
- 🔹 Banking transactions
- 👉 Rate: Your bank's actual rate
- Note: Banks apply their own commercial rates rather than Central Bank rates.
3. DETAILS AND NUANCES
A. Asset Valuation (Balance Sheet and Advance Tax)
For quarterly declarations (Geçici Vergi) and the annual balance sheet, the Central Bank of the Republic of Türkiye's buying rates (TCMB Döviz Alış) are used by default, unless the Ministry of Treasury and Finance issues a decree stating otherwise.
B. Issuing Invoices (Invoicing)
- 🔸 Scenario 1: The contract contains an exchange rate clause (e.g., "rate is fixed at 35 TL").
👉 Use the exchange rate stipulated in the contract.
- 🔸 Scenario 2: There is no exchange rate specified in the contract.
👉 Use the TCMB Döviz Alış rate on the date of issuance.
- 🔸 Scenario 3: The invoice is issued on a weekend or public holiday.
👉 Use the Central Bank rate established on the preceding business day (since the Central Bank does not publish rates on weekends).
C. Stamp Tax (Damga Vergisi) Caution!
This is the most common mistake. If you sign a contract denominated in USD/EUR, the tax amount (for instance, 0.948%) must be calculated based on the Turkish Lira equivalent.
👉 To convert the contract amount into Liras, you must use the Central Bank SELLING rate (Döviz Satış) on the date of signing, not the buying rate!
🎯 SUMMARY FOR THE ACCOUNTANT
- Cash Desk (Cash): Efektif Alış.
- Bank Accounts and Receivables/Payables (Non-cash): Döviz Alış.
- Contracts (Tax): Döviz Satış.
Tip: Always check rates on the official TCMB website under the "Gösterge Niteliğindeki Kurlar" (Indicative Exchange Rates) section. For weekend dates, use Friday's rate.