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Turkey to use local currencies in trade with Iran and China, says Erdoğan

September 3, 2018 at 9:39 am

President of Turkey Recep Tayyip Erdogan can be seen during a press conference in Ankara, Turkey [Kayhan Özer/Anadolu Agency]

Turkish President Recep Tayyip Erdoğan said on Sunday that his country will start using local currencies in trade with Iran and China, Anadolu news agency has reported. Ankara is said to be discussing the same proposal with Russia.

Erdoğan made his remarks at the Kyrgyz-Turkish Business Forum held in the Kyrgyzstan capital, Bishkek. He stressed the need to put an end to US dollar dominance of trade exchange gradually by dealing in local currencies.

“Linking world trade, particularly with the US dollar, is becoming a big problem day after day,” Erdoğan explained. “Countries, companies and traders have to cope with the difficulties linked to the US dollar, the exchange rate pressures and difficulties arising from the nature of the trade itself.”

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Turkey’s head of state noted that the “trade facilitation system” is becoming a major obstacle to global free trade, pointing out that emerging economies are suffering from this problem, with the biggest example being the economic attacks suffered by Turkey in recent weeks. “The aim of manipulating foreign exchange rates is to raise doubts about the strength and robustness of the Turkish economy. All the steps taken by the global credit rating institutions are politicised. These institutions are not honest, they are fraudulent and [we] do not believe them.”

President Erdoğan insisted that his country is determined to achieve full economic independence, especially in defence industries, and that its economy will overcome the current phase and emerge stronger than it was in the past.