President Erdogan announced the signing of a swap agreement between Turkey and China, expanding the limit of the currency agreement between the economies to $ 6 billion.
- The deal will improve the trade in Turkey in local currency, reducing the use of US dollars, which grows the domestic reserves.
- The first similar agreement was signed in 2012, allowing Turkish firms to pay for their Chinese imports using yuan.
- Turkey has been looking for new swap funding to ease the economic pressures resulting from the pandemic.
Prior to the new swap deal, the Turkish reserves were declining.
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