Russian Central Bank: Russia, Turkey have no barriers to trade in national currencies
by Daily Sabah
ISTANBULDec 08, 2016 - 12:00 am GMT+3
by Daily Sabah
Dec 08, 2016 12:00 am
There is no legislative or technical red tape for bilateral trade conducted in national currencies between Turkey and Russia, according to a press release by Russia's Central Bank on Wednesday."There are no legislative and technical obstacles for [conducting]payment [transactions] in the national currencies between residents of Russia and Turkey. There is no need to conclude for this purpose a separate agreement between the two central banks," the bank's press service told RIA Novosti yesterday.
Balanced and diversified trade between the two countries, as well as economic expediency, are the main preconditions for increasing demand in transactions done in national currencies, the press service added.
The statement came after Turkish Prime Minister Binali Yıldırım visited Moscow on Tuesday. Russian news agency Sputnik reported that the prime minister said the central banks of the two countries are working on the issue.
"The Russian side is also interested in this. The central banks have already begun to sort out the currency agreement, including its implementation and the technical issues which need to be resolved to make it happen. [Both] Turkey and Russia are positive about this prospect," Prime Minister Yıldırım said.
The proposal was made by President Recep Tayyip Erdoğan, who argued that the economies should be rescued from the pressure of the exchange rate. Turkey is taking steps to allow commerce with China, Russia and Iran to be conducted in local currencies, President Erdoğan said on Sunday, marking the government's latest effort to shore up the tumbling lira.
"If we buy something from them [foreign countries], we will do that in their [local] currency; if they buy something from us, they will do it in our currency," Erdoğan said, noting that Turkey will "play its own game" in the economic arena against "all games" that are played against it.