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The Chinese state-run Industrial and Commercial Bank of China (ICBC) has officially launched Türkiye’s first renminbi (RMB) clearing bank in Istanbul, aiming to facilitate the use of local currencies in bilateral trade and investment and reduce dependency on the U.S. dollar.
The initiative follows the People’s Bank of China’s (PBOC) decision to authorize ICBC Türkiye as the country’s designated RMB clearing bank, shortly after the central banks of Türkiye and China renewed a 35 billion yuan ($4.7 billion) currency swap agreement in June.
The launch ceremony, held on Monday, brought together around 400 representatives from Chinese and Turkish financial institutions, public bodies, and business communities, including Central Bank of the Republic of Türkiye (CBRT) Governor Fatih Karahan and Deputy Minister of Treasury and Finance Osman Celik.
The RMB clearing bank is expected to streamline RMB-denominated transactions between the two countries, lowering transaction costs and reducing exchange rate risk.
In tandem with the launch, ICBC and UnionPay introduced Türkiye’s first UnionPay multi-currency debit card and dual-currency credit card to support cross-border payments and broaden retail financial services for consumers and businesses engaging in Türkiye–China transactions.
ICBC Chairman Liao Lin described the bank as a "high-speed corridor" for RMB use in trade, finance, and payments between China and Türkiye, and affirmed the bank’s commitment to broader RMB adoption and deeper cooperation with Turkish institutions.
PBOC Vice Governor Tao Ling said in a video message that broader RMB adoption offers a stable option for global trade and finance, highlighting China’s efforts to open its financial markets transparently and predictably.
Chinese Ambassador to Türkiye Jiang Xuebin called the clearing bank a milestone in bilateral financial ties, noting it would ease RMB use in payments, finance, and trade, benefiting businesses in both countries.
Türkiye’s Deputy Minister of Treasury and Finance Osman Celik described the clearing bank as "a new chapter" in Türkiye–China ties, highlighting its role in reducing trade risks, lowering costs, and supporting broader cooperation in green technology, agriculture, the digital economy, finance, and energy.
CBRT Governor Fatih Karahan welcomed the launch as strategically important. He said settling international trade in local currencies would minimize foreign exchange volatility, improve price predictability, and enhance financial integration between nations.
Karahan noted that Turkish companies already benefit from RMB liquidity under the current swap agreement, and the clearing bank would further improve access to RMB funding and payment infrastructure in Türkiye.
Bilateral economic ties between Türkiye and China have gained momentum in recent years, with trade reaching $42.9 billion in 2024 and China’s cumulative foreign direct investment stock in Türkiye standing at $3.2 billion.
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