Turkish president advises D-8 countries to trade in local currencies

President Tayyip Erdogan of Turkey has advised D-8 countries to use their local currencies when trading with one another.

Erdogan made this statement while speaking at the ongoing D-8 summit in Istanbul.

He said this will reduce the pressure associated with dollar-based trade.

“If we are to use local currencies for trade within the D-8, our currencies will be rid of the pressures from foreign exchange and the dollar,” he said.

“When we trade with our national and local currencies, our countries will benefit from this.”

Countries in the D-8 Organisation for Economic Cooperation are Bangladesh, Egypt, Indonesia, Iran, Malaysia, Nigeria, Pakistan and Turkey.

According to Reuters, Turkey and Iran’s central banks have agreed to trade in their local currencies to reduce the cost of currency conversion and transfer for traders.

Also, such agreements help Iran avoid the ban placed on the Arab country by the US, which forbids American banks from transacting business with Iran.

At present, most countries of the world use the dollar to transact business.

Erdogan has been advocating for countries to in their local currencies to protect the lira, which has been on a decline since 2015.

President Muhammadu Buhari, who departed Nigeria on Wednesday, is also attending the summit.