Turkey rules property sales, rental agreements must be in lira

Turkish President, Tayyip Erdogan has ruled that property sales and rental agreements must be made in Turkish lira, putting an end to such deals in foreign currency, in a fresh step to support the lira which has slumped against the dollar this year.

The decision, published in Turkey’s Official Gazette on Thursday, said that existing property sales and rental agreements in foreign currency must be converted into lira within 30 days.

Real estate sale and rental deals in foreign currency are common in Turkey, particularly in the retail sector.

The lira has lost some 40 percent of its value against the dollar so far this year over concerns about Erdogan’s influence on monetary policy and a diplomatic spat between Turkey and the United States.

The latest move came ahead of a central bank meeting on Thursday where policymakers raised interest rates to support the lira.