The Central Bank of the Republic of Turkey and Central Bank of China exchanged money for the first time after Turkish President Recep Tayyip Erdoğan said that Turkey intends to allow commerce with China, Russia and Iran to be conducted in local currencies as a part of the measures taken against the inevitable rise of the U.S. dollar compared to the Turkish lira.
The exchange was 450 million liras worth and made on November 30.
Following the first exchange, a big number of companies, including Turkcell, the mobile phone operator of Turkey, declared that they are to use local currency in the trade with the Chinese supplier.
Also, Iran leans to the plan of making trade in local currencies, as Ali Larijani, the chairman of the Parliament of Iran said that they would be pleased to make that decision.
Also, Russian officials said they are ready to use local currencies in trade with Turkey, during Turkish Prime Minister Binali Yıldırım's official visit to Moscow.
The remarks of the officials followed President Recep Tayyip Erdoğan's words, saying that Turkey had taken steps to carry out its foreign trade using national currencies.
"If we buy something from them [foreign countries], we will do that in their currency; if they buy something from us, they will do it in our currency," Erdoğan said, adding Turkey will "play its own game" in the economic arena against "all the games" played against it.
Since last week, the president has been calling on Turkish citizens to convert their foreign exchange savings into Turkish lira and gold to help boost the lira's value.
'Turkish economy improving'
Central Bank Governor Murat Çetinkaya said that Turkey's economic activity has been recovering in the last quarter of 2016, while fluctuations in the lira will not have a "durable" impact on the economy.
Çetinkaya said the Central Bank would hold its year-end inflation forecast at 7.5 percent, citing a favorable outlook for food prices and moderate domestic demand despite foreign exchange volatility as reasons.
"The bank will continue to support financial stability while aiming to keep inflation close to the target," he added.
About support for the lira, Cetinkaya said, "We will continue to support the local currency as the medium of exchange in economic activities."
