Introduction to China-Türkiye Financial Cooperation
Türkiye’s first renminbi (RMB) clearing bank, operated by the Turkish branch of the Industrial and Commercial Bank of China (ICBC Türkiye), was officially launched in Istanbul on November 17, 2025. This launch marks a significant milestone in China-Türkiye financial cooperation, promoting the use of local currencies in bilateral trade and investment. Nearly 400 representatives from Chinese and Turkish financial institutions, government agencies, and the business community attended the inauguration ceremony.
Background and Significance
The launch of the RMB clearing bank follows the decision of the People’s Bank of China to authorize ICBC Türkiye as Türkiye’s RMB clearing bank. Earlier in June, the two central banks renewed a bilateral currency swap agreement valued at 35 billion yuan (about 4.9 billion U.S. dollars). This move aims to provide a reliable option for global trade and financing, and China will continue to open its financial markets in a market-oriented, law-based, and internationalized manner.
Objectives and Goals
ICBC Chairman Liao Lin stated that the bank aims to build a "high-speed corridor" for RMB use between China and Türkiye. The goal is to expand offshore RMB applications, provide secure and efficient services, and deepen cooperation with Turkish banks, public institutions, and Chinese financial entities to foster an open and mutually beneficial RMB ecosystem. Chinese Ambassador to Türkiye Jiang Xuebin described the establishment of the clearing bank as a "milestone" in bilateral financial cooperation, which will further facilitate the use of RMB in local settlement, financing, and trading.
Benefits and Expectations
The establishment of the RMB clearing bank is expected to deliver tangible benefits for businesses in both countries. Turkish Central Bank Governor Fatih Karahan noted that using local currencies in international trade helps reduce foreign exchange risks, improve pricing predictability, and strengthen financial integration between countries. Deputy Minister of Treasury and Finance Osman Celik stated that the launch represents not only a financial cooperation initiative but also "a new page" in the long-standing relationship between the two countries.
Recent Developments and Future Prospects
In recent years, China-Türkiye cooperation has maintained a steady momentum, with bilateral trade growing rapidly and reaching 42.9 billion U.S. dollars in 2024. China’s stock of direct investment in Türkiye stands at 3.2 billion dollars, and China has become one of Türkiye’s largest trading partners. The growing importance of cooperation in green technology, sustainable agriculture, financial innovation, the digital economy, and energy is also highlighted, with the clearing bank expected to serve these broader goals.
Conclusion
The launch of Türkiye’s first RMB clearing bank marks a significant step forward in China-Türkiye financial cooperation, promoting the use of local currencies in bilateral trade and investment. With its objectives, benefits, and expectations, this development is expected to deliver tangible benefits for businesses in both countries and contribute to the growth of their economic relationship. As China and Türkiye continue to strengthen their financial cooperation, the future prospects for their economic partnership look promising, with potential opportunities for growth and development in various sectors.
