Trade Turkey and China extend currency swap deal By Pramod Kumar June 16, 2025, 9:23 AM NurPhoto/Diego Cupolo The Turkish Central Bank. The deal is designed to promote bilateral trade through a swap-financed trade settlement facility and financial cooperation Turkey and China have extended their currency swap agreement to promote trade in local currencies and reduce reliance on the US dollar. The revised deal allows the exchange of a maximum of TL189 billion ($4.8 billion) through local currency swaps, Turkey’s central bank said in a statement. The arrangement, initially signed in 2019 and expanded in 2021, will remain in force for an additional three years, with the option to renew upon mutual agreement. Turkey and China vow to increase trade via rail Middle Corridor Turkey looks for positives from tariff fallout Turkey hikes tariffs on Chinese cars to boost investment Central banks use currency swaps to promote bilateral trade, boost financial cooperation and provide liquidity support in local currencies. The Turkish central bank has also signed a memorandum of understanding to establish a renminbi clearing arrangement, which is expected to boost bilateral trade and investment. Register now: It’s easy and free AGBI registered members can access even more of our unique analysis and perspective on business and economics in the Middle East. Why sign uP Exclusive weekly email from our editor-in-chief Personalised weekly emails for your preferred industry sectors Read and download our insight packed white papers Access to our mobile app Prioritised access to live events Register for free Already registered? Sign in I’ll register later Register now: It’s easy and free AGBI registered members can access even more of our unique analysis and perspective on business and economics in the Middle East. Why sign uP Exclusive weekly email from our editor-in-chief Personalised weekly emails for your preferred industry sectors Read and download our insight packed white papers Access to our mobile app Prioritised access to live events Register for free Already registered? Sign in I’ll register later
