Turkey Urges OIC Nations to Adopt National Currencies for Trade

In response to growing concerns about the dominance of a single currency in the international monetary system, Turkey has once again urged Organization of Islamic Cooperation (OIC) countries to prioritize the use of national currencies in bilateral trade. This call aligns with Turkey’s long-standing agenda to reduce reliance on foreign currencies and mitigate associated risks.

Strengthening Trade Relations Through Local Currencies

Turkey’s call for OIC member states to adopt national currencies in trade agreements reflects a strategic move to enhance economic resilience and sovereignty. President Recep Tayyip Erdogan has consistently advocated for this approach to ease the pressure of foreign exchange fluctuations and strengthen economic ties between OIC nations.

In his recent address at the 34th meeting of the Standing Committee for Economic and Commercial Cooperation of the OIC (COMCEC) Ministerial Session in Istanbul, Erdogan reiterated the importance of using local currencies. He emphasized that such a shift would help Islamic countries break free from economic dependencies and strengthen intra-OIC trade.

Erdogan highlighted that increasing trade among COMCEC members is vital for boosting their economic strength. He urged member countries to elevate intra-OIC trade to 25 percent and urged them to expedite the completion of procedures and updates to concession lists to facilitate a preferential trade system.

Addressing Existing Gaps and Promoting Financial Innovation

Erdogan also addressed the need for comprehensive reforms in the financial sector, including the exploration of gold-indexed currencies and participatory finance models. He stressed that modernizing customs infrastructures, leveraging information technologies, and simplifying customs procedures are essential for improving trade efficiency.

In his speech, Erdogan criticized the rise in protectionist policies and trade wars under the current U.S. administration, arguing that such measures could severely impact global trade, production, and prosperity. He called for reducing non-tariff barriers and enhancing customs procedures to provide a lifeline for international trade.

OIC’s Focus on Trade and Investment

Yousef al-Othaimeen, Secretary-General of the OIC, reported that trade financing operations and investments in OIC member countries are increasingly concentrated in the trade and finance sectors. He noted that member countries are focusing on infrastructure development and regional cooperation to foster integration and sustainable development.

The COMCEC Ministerial Session, which runs for four days, is centered on the theme “Facilitating Trade: Customs Risk Management.” The event includes special panels with high-level representatives from public and private sectors, international organizations, and academia, focusing on various aspects of customs risk management and trade facilitation.

Key Projects and Future Initiatives

The establishment of the OIC Arbitration Center, proposed by President Erdogan, is progressing. This center, under the Union of Chambers and Commodity Exchanges of Turkey (TOBB) in cooperation with the Islamic Chamber of Commerce, Industry, and Agriculture (ICCIA), will serve as a platform for resolving commercial and investment disputes among OIC member countries. The project is nearing completion.

Additionally, efforts are underway to establish the COMCEC Gold Stock Exchange and the Real Estate Securities Exchange. These initiatives aim to provide alternative investment opportunities and deepen financial cooperation among Islamic countries. The Trade Preferential System among OIC member states (TPS-OIC) is also in its final stages, with the system set to become operational once three member countries finalize their concession lists.

COMEC’s Role and Achievements

With 57 members and five observers, COMCEC is one of the largest international organizations after the United Nations. Since its establishment in 1984, COMCEC has been a key decision-making body at the ministerial level, working to address development issues and enhance economic and commercial cooperation among member countries. The platform has been instrumental in realizing numerous projects and programs to support economic growth and collaboration within the OIC.