12:13, 5 October 2022 Page views 616 views

Russia and Turkiye discuss using TROY payment system

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Earlier, Bloomberg, with reference to an unnamed senior Turkish official, informed that Turkish state-owned banks Halkbank, Ziraat Bank and VakıfBank had decided to stop using Russian Mir payment system. In early October, a representative of Ziraat Bank told RIA Novosti that the bank no longer supports transactions with Mir cards. Later, the Turkish banks Isbank and Denizbank announced the cessation of servicing Mir cards due to US and UK sanctions imposed on the Russian Federation.

“The central banks of the two countries are holding scheduled talks on energy payments, the use of national currencies, the protection of the national financial systems from sanctions and, possibly, the creation of a SWAP line. According to information received by us from our sources, Central Bank Head Shahap Kavcioglu, who believes that trade between countries should be in national currencies, also showed his will in this regard. With the permission of the Bank of Russia, if Russian banks not affected by the US sanctions deal with the Turkish Troy payment system, or if they open an account with Turkish banks operating in Russia and receive a card integrated with Troy, Russian tourists can pay for purchases with these cards in our country (Turkiye),” the newspaper writes.

Reportedly, with the system and transactions under the direct control of Turkiye, “it will not be easy for the US to find a reason to intervene” in this situation.

“The bankers, who are experts in this matter, also note that there are no restrictions for Russians to use other payment methods in our country (Turkiye), but since they cannot use the American system when they travel to their countries, it would be beneficial for them to receive Troy cards both in terms of the promotion of the Turkish national system and in terms of continuity of the use of the cards. We also learned that central banks have a model on the counter, which allows tourists to pay for hotels and transport from their countries through an online system,” the publication clarifies.