HSBC Treasury Management Profiles 2018 -

Current section, Introduction


Turkey has experienced steady growth for more than a decade with an average real GDP growth rate of 5.6 per cent between 2003 and 2016. Structural reforms to increase the role of the private sector in the economy and to enhance the efficiency of the financial sector have helped to position Turkey as a key player in the global economy. A recovery in exports and strong domestic demand helped secure 11 per cent GDP growth in Q3 2017 and, with estimated year-on-year economic growth of 6.5 per cent, Turkey was one of the world’s fastest-growing economies in 2017. The country’s economic stability has also helped transform it in to an upper-middle income country with poverty incidence halved between 2002 and 2015. The IMF raised Turkey’s growth forecast to 4 per cent from 3.5 per cent in February 2018, but despite robust growth indicators, there are concerns about the sustainability of the economy going forward. Turkey’s trade deficit doubled in January 2018 year on year to USD9 billion and increased 83 per cent year on year to USD14.8 billion in February. Its current account deficit has widened to 5.6 per cent of GDP and net foreign direct investment in 2017 fell 18.8 per cent on 2016 figures, to USD10.83 billion, of which 65.2 per cent of the total annual inflow came from the European Union. The government is seeking to increase foreign direct investment over the next 12 months as 2018 sees the launch of major infrastructure projects, such as Istanbul’s New Airport. The government has committed to investing USD64 billion in infrastructure in the coming years.

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Legal and regulatory

  • Foreign exchange and domestic currency (TRY) accounts can be held by residents both domestically and abroad. Resident domestic currency accounts are convertible into foreign currency
  • Non-resident bank accounts are permitted in both foreign and domestic currency. Non-resident domestic currency accounts can be held abroad and are convertible into foreign currency
  • All transactions between residents and non-residents must be reported on an aggregated basis to the Central Bank every month for balance of payments purposes

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  • Residents are subject to taxation on their worldwide income
  • Non-resident companies are only taxed on their Turkish-sourced income
  • The standard corporate tax rate is 22 per cent
  • Foreign currency deposits are subject to 18 per cent withholding tax for a maturity term of up to six months. TRY deposits are subject to 15 per cent withholding tax for a maturity term of up six months. Withholding tax of 15 per cent is levied on all dividends (except for dividends distributed by a resident company to another resident company, and Turkish branches of non-resident companies), and 20 per cent is levied on royalties paid to non-resident companies

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Payment instruments and systems

  • Cash is an important payment medium in Turkey, particularly for low-value retail and commercial transactions. Credit transfers are used for both high-value corporate and low-value retail payment transactions. Payment card use is increasing; credit and debit cards accounted for 56.4 per cent and 37.4 per cent respectively of all cashless payments in 2015. Mobile wallet payment schemes such as BKM Express are available
  • Turkey operates three principal national payment systems: EFT, an RTGS system; the Ankara and Istanbul Interbank Clearing Houses, for cheque payments; and the BKM, for card payments. The Central Bank also operates a giro system that processes credit transfers between its 21 branches on a real-time basis. A low volume of payments is processed through this system

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Cash management

  • Notional pooling is not available in Turkey. Cash concentration is permitted between resident and non-resident accounts. Cross-currency notional pooling and cash concentration is permitted
  • Automated collection methods are increasingly used by medium-sized and large businesses in Turkey

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Electronic banking

  • Electronic banking is available in Turkey and offered by all of the country’s commercial banks
  • Internet and mobile banking is provided by all of the country’s leading banks. In 2016, there were 24 million internet banking users and 17 million users of mobile banking services

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To read the full report on Turkey and to discover more on these and other topics, including banking and trade, please click on the Download PDF option.


  • International Monetary Fund
  • Organisation for Economic Co-operation and Development
  • Ministry of Economy
  • Turk Stat
  • Invest in Turkey

The materials contained on this page were assembled in June 2017 (unless otherwise dated).



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