Feb. 22 (Bloomberg) -- 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.