The Central Bank of the Republic of Türkiye (CBRT) has signed a memorandum of understanding with the Hong Kong Monetary Authority (HKMA) to strengthen cooperation in financial technologies, according to a CBRT statement.. The agreement establishes a framework for collaboration between the innovation functions of the two institutions.
Scope of the cooperation framework
The memorandum is expected to facilitate the exchange of expertise on financial innovation between the CBRT and HKMA, as well as collaboration on future fintech projects. According to the CBRT, the agreement opens the way for closer coordination between the two authorities on initiatives related to financial technology, though specific projects under the framework have not yet been detailed.
Broader context of Türkiye-Hong Kong ties
The fintech memorandum follows the entry into force earlier this year of a double-taxation agreement between Türkiye and Hong Kong, originally signed in September 2024. The treaty, the first formal tax agreement between the two jurisdictions, is designed to prevent the same income from being taxed twice and to provide greater tax certainty for businesses operating across both markets. It will apply to Hong Kong taxes from the 2027/28 tax year and to Turkish taxes from 1 January 2027.
Expanding financial cooperation with China
The agreement with the HKMA comes as Türkiye deepens financial cooperation with both Hong Kong and mainland China, with a particular focus on local-currency settlement and cross-border payment infrastructure. The approach forms part of Ankara's broader strategy to diversify trade financing channels and attract increased investment from Asian markets.
In June 2025, the CBRT and the People's Bank of China (PBOC) signed two separate agreements. The first renewed an existing bilateral currency swap arrangement between the two central banks, while the second established renminbi clearing arrangements in Türkiye. The renewed swap line permits the exchange of up to USD 4 billion between the two central banks over a three-year period, with an option for extension, aimed at supporting bilateral trade settled in local currencies and deepening broader financial cooperation between the two countries.
Implications for regional fintech coordination
Taken together, the tax treaty, the renminbi clearing arrangement, and the newly signed fintech memorandum indicate a broader effort by Türkiye to formalise financial ties with Hong Kong and mainland China across taxation, currency settlement, and technology cooperation. For fintech firms and payment infrastructure providers operating across these markets, the agreement may signal increased regulatory dialogue between the CBRT and HKMA, though the practical scope of joint fintech initiatives under the memorandum has not yet been specified.
