China, Turkey Sign $1.6 Billion, Three-Year Yuan-Lira Currency Swap Accord

China and Turkey signed a three-year currency swap agreement worth 10 billion yuan ($1.6 billion), or 3 billion liras, the Turkish central bank said.

The accord signed with the People’s Bank of China will facilitate bilateral trade in the Turkish and Chinese currencies and may be extended, the central bank in Ankara said in an e- mailed statement yesterday.

China has been expanding currency-swap agreements as it promotes the international use of the yuan. The nation last month signed a 35 billion yuan currency swap with the United Arab Emirates, and in December entered a 70 billion yuan, three- year deal with Thailand.

Turkey and China are holding “advanced” talks on currency swaps that would enable the two countries to trade in their local currencies, Turkish central bank Governor Erdem Basci said in Istanbul on Sept. 28.

The agreement was announced during a visit to Turkey by China’s Vice President Xi Jinping, who held talks with Turkish President Abdullah Gul in Ankara yesterday.

Xi called on the international community to let countries in West Asia to solve their domestic unrest by themselves, with diplomatic mediation by other countries, China’s official Xinhua News Agency reported.

To contact the reporters on this story: Emre Peker in Ankara at epeker2@bloomberg.net; Kana Nishizawa in Hong Kong at knishizawa5@bloomberg.net

To contact the editors responsible for this story: Andrew J. Barden at barden@bloomberg.net; Nick Gentle at ngentle2@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.