Turkey and Russia have reached an agreement to start using their national currencies, the lira and the ruble, in bilateral trade, instead of the US dollar. The decision was announced by Turkish President Recep Tayyip Erdogan and Russian President Vladimir Putin at their meeting in Sochi on Monday.
The move is seen as a way to reduce the dependence on the dollar and to protect the two countries from the impact of US sanctions and tariffs. Both Turkey and Russia have faced economic pressure from Washington in recent years, over issues such as human rights, regional conflicts, and nuclear programs.
By trading in national currencies, Turkey and Russia hope to lower the transaction costs, increase the stability of exchange rates, and boost their trade volume. The two countries have set a target of reaching $100 billion in bilateral trade by 2030, up from $23.5 billion in 2019.