ANKARA, Turkey, June 22 (SeeNews) – Turkey`s central bank said last week that Turkish companies used Chinese funds in yuan for the first time last week as part of a swap agreement signed with the People`s Bank of China. Officials also recently said that Ankara had tried to expand a swap mechanism with China and set up swap lines with Japan and the UK. The tripling of the swap line with Qatar to reach $15 billion in local currency equivalent last month resulted in an $8 billion increase in reserves, but analysts said it fell far away from meeting the country`s needs. In May, Reuters reported that the central bank was insinuating itself to set up swap lines with central banks in England and Japan and to expand its existing swap lines with Qatar and China. Turkish Finance Minister Berat Albayrak recently said That Turkey was in talks on setting up swap lines with several countries. The first use of the Chinese yuan (CNY) financing under the swap agreement signed between the Central Bank of the Republic of Turkey (CBRT) and the People`s Bank of China in 2019 was carried out on 18 June 2020. In this way, Turkish companies from different sectors paid their import bills from China through CNY through relevant banks. Last month, Turkey tripled its currency exchange agreement with Qatar from $5 billion to $15 billion (TL 102.66 billion). CBRT said the agreement with its Qatari counterpart was aimed at facilitating bilateral trade in local currencies and supporting the financial stability of both countries.
As part of the facility, swaps are made in Turkish lira and Qatari riyal. CBRT will continue to support swap agreements and the use of these resources, as well as the use of local currencies in international trade. The Turkish Central Bank announced on Friday that the first use of Chinese yuan financing had been made on Thursday as part of the swap agreement signed with China. ANKARA, June 19 (Xinhua) — Turkey`s central bank announced Friday that it has used the Chinese yuan for the first time to finance facilities under a swap agreement signed last year with China. He added that this step would strengthen cooperation between Turkey and China and that commercial banks would be able to add products related to commercial and financial activities with a strategy based on the swap agreement. Finance Minister Berat Albayrak recently said that Turkey is actively holding discussions to establish swap lines with many countries, mentioning the United States, China, Japan, South Korea, Malaysia and India. In this context, at the end of May, Turkey tripled the value of its swea currency agreement with Qatar, which rose to $15 billion from $5 billion.