On June 13, 2025, the People's Bank of China announced that with the approval of the State Council, the People's Bank of China and the Central Bank of Turkey recently renewed the bilateral local currency swap agreement, with a swap scale of 35 billion yuan/189 billion Turkish lira, the agreement is valid for three years and can be extended by mutual agreement.
After the 2008 global financial crisis, the People's Bank of China signed bilateral currency swap agreements with foreign central banks or monetary authorities. Over the years, bilateral currency swaps have played an active role in maintaining global financial stability, providing liquidity support, and supporting bilateral trade and investment.After the renewal of the agreement with the Central Bank of Turkey, the People's Bank of China has signed bilateral local currency swap agreements with the central banks or monetary authorities of 32 countries and regions, with a total swap agreement size of about 4.5 trillion yuan.
In recent years, under the bilateral local currency swap agreement between China and Turkey, the Central Bank of Turkey has actively used RMB swap funds to support local currency settlement, which is conducive to improving the level of bilateral trade facilitation between China and Turkey.
At the same time, the People's Bank of China and the Central Bank of Turkey also signed a memorandum of cooperation on the establishment of a RMB clearing arrangement in Turkey. The so-called RMB clearing bank arrangement refers to the mutual trust mechanism established by the People's Bank of China and overseas central banks (monetary authorities) to support the development of local RMB business, which first began in Hong Kong and Macao. In 2003 and 2004, the People's Bank of China authorized BOCHK and BOC Macau to act as clearing banks for RMB business in Hong Kong and Macao respectively, providing clearing arrangements for banks in Hong Kong and Macao to handle personal RMB business. In 2009, the pilot project of RMB settlement of cross-border trade was launched, and the business scope of RMB clearing banks in Hong Kong and Macao was expanded.
In order to meet market demand, further enrich RMB products in the offshore market and provide more convenient RMB clearing services, the People's Bank of China has successively reached agreements with many central banks to establish RMB clearing arrangements. At present, the People's Bank of China has authorized 34 RMB clearing banks in 32 countries, covering major economies around the world.
The RMB Clearing Bank also plays an important role in facilitating bilateral trade and investment. Industry insiders told reporters that the RMB clearing bank can provide a wealth of RMB options and solutions for the economic and trade cooperation between the two countries under the premise of complying with local laws and regulations, improve the overall cross-border RMB service capacity and RMB clearing efficiency of the host country, better meet the local currency settlement needs of enterprises of the two countries in bilateral trade and investment activities, and promote trade and investment facilitation.(This article is from the official website of Seetao www.seetao.com. Reprinting without permission is strictly prohibited. Please indicate Seetao.com + original link when reprinting) Seetao.com Strategy Column Editor/Sun Fengjuan
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