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Saturday, March 17, 2018

Russia and Turkey will exchange currencies: pros and cons

Russia and Turkey are discussing the possibility of settlements in rubles on the territory of Turkey and the Lira in Russia. This was announced by Turkish economy Minister Nihat Zeybekci on the Russian-Turkish media forum in Antalya. According to him, this issue will be considered at the October meeting of the Russian-Turkish mixed Commission on trade-economic cooperation. As experts explain, “MK”, Ankara is trying to find ways for rapprochement with Moscow in the European Union it is actually closed, and relations with the United States soured after a failed coup attempt.

photo: pixabay.com

“Because of the developments in bilateral relations, both our countries have suffered. It was a sick period. Recently, our Central Banks have held talks on the implementation of the mutual trade in rubles and Turkish liras,” said the Minister of economy of Turkey Nihat Zeybekci. Therefore, a Turkish official said to the guests from Russia to use in Turkey.

“In October the Minister of energy of Russia will meet and will hold a meeting of the Russian-Turkish mixed Commission on trade-economic cooperation and a large business forum. One of our goals is to Russians in Antalya and whole of Turkey was able to pay in rubles, and the Turks in the Russian lier,” — said the Turkish Minister.

“A sharp drop in tourism revenues is forcing Ankara to look for original recipes the recovery of the national economy in light of warming relations with Moscow, — says “MK” Andrew Dirgin, Director of the analysis Department at alpha-Forex. – The transition to settlements in rubles and Lira are possible between entities, it is beneficial to Turkish and Russian companies as it reduces the costs of conversion into dollars. For example, Russia and China have also partially moved to settlements in yuan and rubles. However, it is worth noting that given the high fluctuations of the ruble and the Turkish Lira of domestic and Turkish companies will be sensitive to settlements in national currencies. In addition, for the implementation of such decisions it is necessary to create infrastructure in Russia and in Turkey, and it will take at least six months. As for payment in Russian rubles to Turkish resorts, the course most likely will still be too high, because the outlets this is unlikely to be beneficial.

“After before Turkey actually closed the door to the EU, while the government is Recep Tayyip Erdogan and the U.S. the relationship soured after a failed coup attempt, Ankara Willy-nilly looking for ways to a rapprochement with Moscow, – says Stanislav Werner, Vice President of IFC Financial Center. And services trade in national currencies, the fact that so cherishes President Vladimir Putin, this is the best match. This is in defiance of the United States, and the basis for more rapid recovery of mutual trade. The question of the speed of such initiatives during the month — all the details are not worked out. At the upcoming October meeting of the Minister of economy of Turkey and the Minister of energy of the Russian Federation can only be expected “welding hours and discuss sensitive issues. To pay in rubles in Turkey the opportunity to appear, probably not until next holiday season and it can be even more optimistic option. For this to be built the appropriate infrastructure, which will require considerable time.”

Relations between Russia and Turkey. Chronicle of events

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