Post by : Jyoti Gupta

Photo:Reuters

Turkey and China have decided to keep their currency swap deal going for another three years. This deal lets both countries exchange their own money—Turkish lira and Chinese yuan—instead of always using the US dollar when they buy and sell things from each other.

With this agreement, Turkey can get the Chinese yuan, and China can get Turkish lira. They can swap up to 189 billion lire or 35 billion yuan, depending on what they need. This makes it easier for companies in both countries to pay for goods and services because they don’t have to worry about changing money into dollars first.

The leaders of the two countries’ banks signed the agreement. They hope it will help businesses in Turkey and China trade more smoothly and save money. It also means that both countries trust each other and want to work together more in the future.

Along with the swap deal, Turkey and China also agreed on a new way to handle payments in Chinese yuan. This should make it even easier for businesses to pay each other when they do business together.

 This deal is meant to help both countries trade and grow their economies, while making sure they don’t have to depend too much on other currencies.