Performance of Monetary Obligations and Foreign-Currency Clauses

Legal Article · 12 November 2026
Av. Thomas Andreas Di Constantinople

Article 99 of the Turkish Code of Obligations generally provides payment in national currency. Parties may agree foreign-currency debt, subject to validity and special foreign-currency contract rules. The currency in which the obligation arises and the currency in which it may be paid are separate questions.

Where payment is agreed in foreign currency, the debtor may pay national currency at the payment day's current rate unless the contract requires payment in that currency or equivalent wording. Merely stating a foreign-currency amount therefore does not alone necessarily require actual delivery of that currency.

If a foreign-currency debt without such a clause is unpaid at maturity, the creditor's elections under Article 99 of the Turkish Code of Obligations arise. Demanding the original currency or national currency at the maturity or actual-payment date's rate depends on the claim's scope. Exchange differences and default interest are not the same.

Allocation to interest and expenses and among several debts may also apply. A bank transfer alone does not always explain which claim was discharged. Performance date, payment explanation, and the contractual currency clause must be examined together.

Legal Basis: Turkish Code of Obligations No. 6098, Articles 99–102. Official legislative text.

This article has been prepared for general legal information purposes.