New swap agreement between the central banks of Turkey and China

The Central Bank of the Republic of Turkey has announced the renewal of its Turkish lira-Chinese yuan currency swap agreement with the People's Bank of China.

The agreement was signed by TCMB Governor Fatih Karahan and People's Bank of China Governor Pan Gongsheng.

In the statement, it was noted that the agreement will allow for a local currency swap of up to 189 billion Turkish lira or 35 billion Chinese yuan between the two central banks, in accordance with current exchange rates.

THE AGREEMENT WILL BE VALID FOR 3 YEARS

This agreement, which will be valid for three years, can be extended upon mutual consent of the parties. It was stated that the agreement aims to promote bilateral trade and financial cooperation through currency swap-financed trade settlement. The parties anticipate that this agreement will further strengthen cooperation between the two central banks.

Additionally, the TCMB and the People's Bank of China signed a memorandum of understanding for renminbi clearing arrangements to promote the facilitation of bilateral trade and investments. This agreement was also signed by Fatih Karahan and Pan Gongsheng.