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Russia backs non-dollar trade with Turkey, no promise of help amid lira crisis
"I don't think the Russians will bankroll Turkey at this stage, as I think they have their own issues with the United States with sanctions and will want to maintain their own FX buffers," [Timothy Ash, senior strategist at BlueBay Asset Management] said.

NON-DOLLAR TRADE

Turkey has a track record of using national currencies in international trade. Last October, the Turkish and Iranian central banks formally agreed to trade in local currencies after using the euro for settlements in the past.

Using national currency in mutual trade has its drawbacks, however. If the currency of one of the parties to a trade is in meltdown [TECHNICAL NOTE], that exposes the other party to heightened risks that would not usually exist if the deal was settled in dollars.

possibly "unitization"

Diversity is the key to economic and political evolution.
by Cat on Tue Aug 14th, 2018 at 06:20:37 PM EST
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