Reference News Network reported on June 15 that according to a report from the Singapore-based Lianhe Zaobao website on June 14, the Chinese authorities announced that China and Turkey's central banks have renewed the bilateral local currency swap agreement, and Turkey will set up a Renminbi clearing arrangement.
According to a message released by the People's Bank of China (PBOC) on its official website on June 13, with the approval of the State Council, the PBOC has recently renewed the bilateral local currency swap agreement with the Central Bank of Turkey. The scale of the swap is 35 billion yuan RMB / 189 billion Turkish lira, the agreement is valid for three years, and can be extended upon mutual consent. At the same time, both parties also signed a cooperation memorandum to establish a Renminbi clearing arrangement in Turkey.
The PBOC stated that the above arrangements mark a new step in financial cooperation between China and Turkey, which will facilitate enterprises and financial institutions of both countries to use their local currencies for cross-border settlements, further promoting the facilitation of bilateral trade and investment.
It was reported that this is the fifth time that the central banks of China and Turkey have signed a bilateral local currency swap agreement. As of now, the PBOC has signed bilateral local currency swap agreements with the central banks or monetary authorities of 32 countries and regions, with a total scale of approximately 4.5 trillion yuan RMB.
The Renminbi clearing bank arrangement is a trust mechanism established by the PBOC with foreign central banks or monetary authorities to support the development of local Renminbi business. It started earliest in Hong Kong and Macau. In 2009, the pilot program for cross-border trade Renminbi settlement was launched, and the scope of business of the Renminbi clearing banks in Hong Kong and Macau was subsequently expanded. A total of 34 Renminbi clearing banks have been authorized in 32 countries, covering major global economies. By the end of 2024, the number of overseas financial institutions opening clearing accounts at Renminbi clearing banks has exceeded 1,000.
Original article: https://www.toutiao.com/article/7515992785170776630/
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