Turkiye’s first renminbi clearing bank officially started operating in Istanbul. The bank, which will be operated by ICBC Turkey, the Turkish branch of the Industrial and Commercial Bank of China (ICBC), is a new turning point in China-Turkey financial cooperation.
According to the news in Xinhua, Turkey’s first renminbi clearing bank officially started operating in Istanbul. The bank, which will be operated by ICBC Turkey, the Turkish branch of the Industrial and Commercial Bank of China (ICBC), is a new turning point in China-Turkey financial cooperation. The bank is expected to further promote the use of local currencies in bilateral trade and investments.
Approximately 400 representatives from financial institutions, government institutions and business circles in China and Turkey attended the opening ceremony on Monday.
Some time before the opening of the bank, the Central Bank of China decided to authorize ICBC Turkey as the renminbi clearing bank in Turkey. The central banks of Turkey and China renewed a bilateral currency swap deal worth 35 billion yuan (about 4.9 billion US dollars) in early June.
Tao Ling, Vice President of the Bank of China, said in a video link at the opening that the widespread use of renminbi offers a reliable option for global trade and finance. Tao stated that China will continue to expand its financial markets to the outside in a market-oriented, law-based and internationalized way, while increasing policy transparency, stability and predictability.
Liao Lin, Chairman of the Board of Directors of the Industrial and Commercial Bank of China, said that the bank aims to build a “high-speed corridor” between China and Turkey for the use of renminbi. Liao stated that they will expand their offshore RMB applications, provide safe and efficient services in all major business lines, and deepen their cooperation with Turkish banks, public institutions and Chinese financial institutions to develop an open and mutually beneficial renminbi ecosystem.
China’s Ambassador to Ankara, Jiang Xuebin, described the establishment of the clearing bank as a “turning point” in bilateral financial cooperation. Noting that the establishment of the bank will further facilitate the use of renminbi in local currency payments, financing and trade, Jiang also stated that this will provide tangible benefits to businesses in both countries.
Cooperation between China and Turkey has continued its steady momentum in recent years. While rapidly growing bilateral trade reached 42.9 billion US dollars in 2024, China’s direct investment stock in Turkey amounted to 3.2 billion dollars. According to the statistical data announced by the authorized institutions in Turkey, China has become one of Turkey’s largest trading partners in the first three quarters of this year. The year-end trade volume is expected to break records.
Deputy Minister of Treasury and Finance Osman Çelik said in his speech at the opening ceremony that the bank’s opening was not only a financial cooperation initiative, but also a “new page” opened in the long-term relationship between the two countries. Çelik stated that the renminbi clearing bank will help reduce trade risks and transaction costs, as well as increase opportunities in the fields of trade, investment and long-term financing.
Drawing attention to the increasing importance of cooperation in the fields of green technology, sustainable agriculture, financial innovation, digital economy and energy, Çelik said that the exchange bank will also contribute to these broader goals.
Fatih Karahan, Governor of the Central Bank of the Republic of Turkey (CBRT), pointed out that the opening of the bank was of “strategic importance” and said that the use of local currencies in international trade helped to reduce foreign exchange risks, increase pricing predictability and strengthen financial integration between countries.
Stating that Turkish companies have access to renminbiye for trade purposes within the scope of the current swap agreement, Karahan stated that the fact that ICBC Turkey will operate a renminbi clearing bank will further improve access to financing and renminbi payment channels in the domestic market.
With the launch of the trade bank, ICBC and UnionPay launched Turkey’s first UnionPay multi-currency debit card and double-currency credit card, providing new opportunities for cross-border payments and retail financial services.
https://yonhaber.com/asya-gundemi/turkiyenin-ilk-renminbi-takas-bankasi-faaliyete-gecti/