Turkey to use national currencies in trade with neighboring countries

Turkey to use national currencies in trade with neighboring countries

Turkey aims to boost the use of local currencies in trade relations with neighboring countries, to make sure that the country can independently carry out business using the Turkish lira and protect it from rate fluctuations.

As Daily Sabah writes in the article Turkey to boost use of national currencies in trade with neighboring countries: economy min, Economy Minister Nihat Zeybekci told  that the use of the Turkish Lira in the country's foreign trade volume has reached 15 percent, but noted that this figure is around 6 to 7 percent when gold trade is excluded. When Turkey trades using foreign currencies, this damages the Turkish Lira while strengthening foreign currencies, Zeybekci said, adding that when trade is done using local currencies, Turkey will not be negatively affected by rate fluctuations as much. "This benefits everyone, including Russia, Iran, Turkey, China and Japan" he said. Zeybekci also emphasized the growing development of electronic trade, underlining the importance and prevalence of e-commerce.

He noted that 12 percent of trade occurs electronically in developed countries, whereas in developing countries it is only around 6 to 7 percent. He warned that since each year this rate increases by 15 percent, and the entire trading system will completely change within the next five years, it is imperative that Turkey starts trading with national capital now.

Turkey's efforts to boost trade in Turkish lira have recently bore fruit. According to data obtained from the Turkish Statistical Institute (TurkStat), exports in Turkish lira soared 128 percent in August compared to the same month last year, reaching about $1.32 billion while imports in the currency rose 39 percent in the same month. Considering that exports made in Turkish lira stood at around $578.75 million in August last year, the usage of the currency in exports increased by 128 percent in one year.