Turkey tripled its currency swap agreement with Qatar to $15 billion equivalent from $5 billion, the central bank in Ankara said on May 20, sealing a deal for some much-needed foreign funding.
Turkey’s Central Bank said the amendment of the limit on a 2018 swap agreement aimed to facilitate bilateral trade in local currencies and support the financial stability of the two countries.
Under the facility swaps are conducted in Turkish lira and Qatari riyal.
The first deal worth $3 billion was signed in August 2018 and then raised to $5 billion in November 2019.
Previously, Turkish Treasury and Finance Minister Berat Albayrak said the country has been conducting talks to establish swap lines with members of G20, with more than one swap line possible.
Authorities have been leaning on state lenders to flood the market with dollars, and finding a source of foreign exchange has become increasingly urgent with gross central bank reserves down $17 billion since the beginning of the year to $89.2 billion.
The lira erased losses following the swap deal amendment and was trading at 6.79 per dollar at 10:50 a.m.