ISTANBUL, Nov. 18 (Xinhua) -- Trkiye's first renminbi (RMB) clearing bank -- operated by the Turkish branch of the Industrial and Commercial Bank of China, ICBC Trkiye -- was officially launched in Istanbul on Monday, marking a new milestone in China-Trkiye financial cooperation and further 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.

The launch follows the decision of the People's Bank of China, the country's central bank, to authorize ICBC Trkiye as Trkiye'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).

In a video address, Tao Ling, deputy governor of the People's Bank of China, said wider RMB use provides a reliable option for global trade and financing. She emphasized that China will continue to open its financial markets in a market-oriented, law-based and internationalized manner, while enhancing policy transparency, stability, and predictability.

ICBC Chairman Liao Lin said the bank aims to build a "high-speed corridor" for RMB use between China and Trkiye. He pledged to expand offshore RMB applications, provide secure and efficient services across all major business lines, and deepen cooperation with Turkish banks, public institutions, and Chinese financial entities to foster an open and mutually beneficial RMB ecosystem.

Chinese Ambassador to Trkiye Jiang Xuebin described the establishment of the clearing bank as a "milestone" in bilateral financial cooperation, saying it will further facilitate the use of RMB in local settlement, financing, and trading, delivering tangible benefits for businesses in both countries.

In recent years, China-Trkiye cooperation has maintained a steady momentum. Bilateral trade has grown rapidly, reaching 42.9 billion U.S. dollars in 2024, while China's stock of direct investment in Trkiye stands at 3.2 billion dollars. According to Turkish statistics, China has already become one of Trkiye's largest trading partners in the first three quarters of this year, with full-year trade expected to reach a new record.

On the Turkish side, Deputy Minister of Treasury and Finance Osman Celik said the launch represents not only a financial cooperation initiative but also "a new page" in the long-standing relationship between the two countries. He noted that the RMB clearing bank will help reduce trade risks and transaction costs, while fostering opportunities in trade, investment, and long-term financing.

Celik also highlighted the growing importance of cooperation in green technology, sustainable agriculture, financial innovation, the digital economy, and energy, noting that the clearing bank will serve these broader goals.

Turkish Central Bank Governor Fatih Karahan described the launch as "strategically important," noting that using local currencies in international trade helps reduce foreign exchange risks, improve pricing predictability, and strengthen financial integration between countries.

He added that Turkish firms have already accessed RMB for trade under an existing swap agreement, and ICBC Trkiye's operation as the RMB clearing bank will further improve access to RMB financing and payment channels in the domestic market.

Alongside the clearing bank launch, ICBC and UnionPay introduced Trkiye's first UnionPay multi-currency debit card and dual-currency credit card, expanding tools for cross-border payments and retail financial services.