Turkey and China Boost Currency Swap Arrangement With $3.6 Billion Deal

Source: Bloomberg

Turkish President Recep Tayyip Erdogan over the weekend said the country inked a new $3.6 billion swap deal with China.

• The agreement will raise the cap on the current arrangement to $6 billion.
• The deal will enable Turkey to enhance trading relations with China in local currency and support central bank reserves by shying away from the dollar.
• Erdogan did not provide a timetable for the latest agreement.
• The President made the announcement in Istanbul ahead of a North Atlantic Treaty Organization summit in Brussels.
• The first swap deal between the two countries was inked in 2012 to allow Turkish firms to pay for imports using the yuan.