The Governments of Turkey and Russia signed an agreement to make mutual payments in national currencies, according to information published this October 8 by the Russian Ministry of Finance.
The text states that the agreement, signed on October 4 between the two nations, provides for “gradually increasing and changing the use of national currencies (ruble and lira) for agreements between the two countries, creating adequate financial market infrastructure and increasing attractiveness. of national currencies for commercial entities.”
They also seek to “expand and strengthen interbank cooperation, as well as guarantee uninterrupted agreements between the commercial entities of the Russian Federation and Turkey.”
The nations also seek to facilitate the use of the Russian Mir card in Turkey and increase the connection of Turkish banks and companies to the SPFS of the Bank of Russia, analogs of the international SWIFT system.
The announcement of the agreement comes amid the threats of further coercive measures by the Donald Trump Administration.
Only this Monday, the US president issued a warning to the nation ruled by Recep Tayyip Erdogan:
As I have stated strongly before, and just to reiterate, if Turkey does anything that I, in my great and unmatched wisdom, consider to be off limits, I will totally destroy and obliterate the Economy of Turkey (I’ve done before!). They must, with Europe and others, watch over…
— Donald J. Trump (@realDonaldTrump) October 7, 2019
In the face of US sanctions, other nations also seek to free themselves from dollar transactions, including Iran.
The Islamic Republic announced at the end of September that financial transactions between Russia and Turkey will be made through the official currencies of the two nations.