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Turkey and Russia ink agreement to trade in local currencies

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Christian Fernsby ▼ | October 9, 2019
Russia and Turkey have signed an agreement on using national currencies in payments and settlements between the two countries.
Berat Albayrak
Russia   Minister Berat Albayrak
Turkey's Treasury and Finance Minister Berat Albayrak and his Russian counterpart Anton Siluanov signed an agreement last week on using national currencies in payments and settlements between the two countries, the Russian finance ministry said Tuesday, according to a report by Daily Sabah newspaper.

Topics: Turkey Russia trade

The agreement, signed on October 4, is aimed at gradually switching to using the ruble and the lira in mutual settlements, the ministry said.

Within the scope of the agreement, commercial institutions' demand for two currencies will be raised and a proper finance structure will be established.

The agreement envisages connecting Turkish banks and companies to the Russian version of SWIFT payment system, while enhancing the infrastructure in Turkey that would allow using the Russian MIR cards, designed by Moscow as alternative to MasterCard and VISA.

The agreement is a significant step for increasing fair trade and economic cooperation between two countries, according to the announcement.

Two countries' bilateral trade totaled $25.4 billion last year, with Russia dominated it by making nearly $22 billion export to Turkey.