Türkiye and China Renew Bilateral Currency Swap Deal Worth ₺189 Billion

The Central Bank of the Republic of Türkiye (CBRT) and the People’s Bank of China (PBoC) have officially renewed their bilateral currency swap agreement, strengthening the financial collaboration between the two countries and aiming to facilitate trade in local currencies.

In a statement released by the CBRT, the agreement was signed by CBRT Governor Fatih Karahan and PBoC Governor Pan Gongsheng.

The updated swap deal enables the exchange of up to 189 billion Turkish lira or 35 billion Chinese yuan, based on prevailing exchange rates. It is valid for three years and can be extended upon mutual agreement.

“The agreement aims to promote bilateral trade and financial cooperation through swap-financed trade settlements,” the central bank said.

The renewed agreement is expected to enhance local currency usage in cross-border transactions and deepen monetary cooperation between the two central banks.

Strengthening Bilateral Ties Through Local Currency Use

This swap mechanism plays a strategic role in reducing reliance on major foreign currencies like the U.S. dollar in trade settlements, while offering liquidity support and encouraging direct trade flows between Türkiye and China.

Such currency swap deals are also viewed as tools for strengthening financial stability, particularly during periods of market volatility or foreign exchange stress.

By continuing the swap line, both Türkiye and China aim to expand economic integration and solidify a long-term partnership in line with evolving global financial trends.