Wednesday 20 May 2020

#Qatar offers #Turkey relief by tripling FX swap line to $15 billion - Reuters

Qatar offers Turkey relief by tripling FX swap line to $15 billion - Reuters:

Turkey secured a tripling of its currency-swap agreement with Qatar to $15 billion, the central bank said on Wednesday, providing some much-needed foreign funding to reinforce its depleted reserves and help steady the Turkish lira.

Ankara had been urgently seeking access to funds from Doha and elsewhere to head off a potential currency spiral, and analysts say tens of billions of dollars might be needed. A senior Turkish official told Reuters talks are continuing.

Turkey’s central bank said the deal with its Qatari counterpart - which raised the existing FX limit from the equivalent of $5 billion - would support financial stability and trade.

The lira touched a historic low earlier this month as investors fretted over a drop in the central bank’s net FX reserves and the country’s relatively high foreign debt obligations, accelerating Ankara’s overseas funding search.


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