ANKARA: The potential strength of the Turkish lira for use foreign trade transactions is on the agenda. The best pioneering example of a national currency put to such was set by the Chinese government, making China rank at the top worldwide with a foreign trade volume of $4 billion. Taking its first decisive steps to become a super power in the world in 2011, the Chinese government developed a strategic action plan to turn its national currency, the yuan, into a major foreign trade currency, especially for use as a substitute to the U.S. dollar. China asked its foreign trade partners to pay in yuan, so that it could directly include the 204 countries that make up its foreign trade partners in its own financial system. The result it expected from this process was a reduction in dependency on the dollar in foreign trade. So what did the Chinese authorities do to achieve this ambitious plan? They applied an efficient and fast global communication policy. As instructed by the Chinese Central Bank, the major Chinese banks circulated draft foreign trade agreements based on the Chinese currency to foreign banks at several inter national events and fairs they attended.
Decisions made by the government were promptly communicated to all the players involved in the system, including the real sector, banks, central banks and other entities comprising the system. As a result, all the partners would enter the process and adapt to both systemic and organizational changes. This is now a good example of a fully functioning train that consists of both locomotive and wagons; the more wagons that adapt to the maneuvers of the locomotive, the longer the distance that can be traveled.In foreign trade transactions, it is very important to develop an efficient and comprehensible communication policy for decisions made in a country. Working to use its national currency in foreign trade for approximately six years, China considers these countries as its strategic partners. Here it is time for Turkey to apply this win-win strategy in terms of using the Turkish lira in its foreign trade transactions with China. If Turkey succeeds in cooperating with a powerful country, it will lead to a domino effect with regard to other potential countries.
