A presidential decree has been published in the Official Gazette ordering that all sales and leasing contracts made in foreign currencies in Turkey must be converted into lira within 30 days.

A view of Istanbul's skyline, in Istanbul, Turkey on Friday, May 6, 2016.
A view of Istanbul's skyline, in Istanbul, Turkey on Friday, May 6, 2016. (Lefteris Pitarakis / AP Archive)

President Recep Tayyip Erdogan signed a decree on Thursday that requires using the lira for buying, selling and renting of real estate and leasing of vehicles, according to presidential sources.

The decree was also published in the Official Gazette.

Purchase, sales and rental contracts of moveable and immovable properties and vehicle leasing made in foreign currencies will be converted into Turkish lira within 30 days, according to the decree.

It added that in the current contracts, the agreed prices in foreign currencies will be redefined as Turkish lira within one month and the terms of the decree will be executed by the Finance and Treasury Ministry.

On August 29, Finance and Treasury Minister Berat Albayrak said the government would take steps to prevent foreign currencies from being used for real estate and shopping mall store rent and sales.

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, affected by US support of YPG terrorists in Syria despite Ankara's objections, Washington's failure to extradite FETO terror group leader Fetullah Gulen, and the house detention in Turkey of an American pastor charged with terror-related offences.

The latest move comes ahead of a Turkey central bank meeting on Thursday when policymakers will decide whether to raise interest rates to support the lira.

Source: AA