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.
BIST 100 Index gains +0.17 on news.
