Turkey exempts non-resident financial institutions from FX tax

ISTANBUL (Reuters) – Turkey has exempted non-resident financial institutions from paying a foreign currency purchase tax, the country’s Official Gazette said on Saturday.

The Bank Insurance and Transaction Tax (BSMV) was raised in May to 1% from 0.2% in a move to discourage a so-called dollarization trend among Turks buying dollars and other hard currencies.

The presidential decision, published in the Gazette, takes immediate effect.