The Ministry of Finance of the Russian Federation announced that an agreement was signed with Turkey on October 4 to increase the usage of local currencies in bilateral trade.
The newly signed agreement between Turkey’s Minister of Treasury and Finance Berat Albayrak and the Russian Minister of Finance and First Deputy Prime Minister Anton Siluanov is expected to bring a gradual increase in the usage of Turkish Lira and Russian Ruble in the two countries bilateral trade.
The announcement indicates that appropriate financial market infrastructure will be developed, and the appeal of the usage of local currencies in business will be increased.
According to the new agreement, the usage of the financial messaging system of the Bank of Russia (SPFS), which is the Russian alternative for SWIFT, and Russia’s MIR cards will be further expanded in Turkey.
The announcement emphasizes foreign expansion plans for Russian and Turkish financial messaging systems. Moreover, it is stated that Russian and Turkish issuers will develop instruments for issuing debt securities in the markets of the two countries to increase liquidity,
The agreement is expected to be a significant step for developing mutually beneficial and equitable results in trade and economic cooperation between the two countries.