The swap deal limit between the central banks of Turkey and Qatar has been amended to $15 billion equivalent of Turkish lira and Qatari riyal. According to a statement from the Turkish Central Bank on May 20, the move aims to facilitate bilateral trade in respective local currencies and to support financial stability of the two countries.
Zeitgeist Turkey | Episode 7: As Turkish lira weakens to beyond 7 against dollar Erdoğan faces a choice
Duvar English’s editor-in-chief Cansu Çamlıbel and pollster Can Selçuki are joined by political economist Esen Çağlar to discuss the underlying factors behind the accelerating loss of value of the Turkish lira against the dollar. They look for answers to how the Turkish government is caught between a rock and a hard place by rapidly selling the Central Bank reserves. They also discuss whether Ankara can secure a swap line from the U.S. without giving up Russian S-400s.
The U.S. Ambassador to Turkey, David Satterfield, has said that Ankara risks sanctions from Washington if it activates the Russian-made S-400s. "We made our position quite explicit to President Erdogan, to all the senior leadership of Turkey, and that is the operation of the S-400 system...exposes Turkey to the very significant possibility of Congressional sanctions, both those that invoke the CAATSA legislation, and additional freestanding legislative sanctions," he said on April 30.
Since the COVID-19 crisis erupted, Turkish Central Bank’s reserves fell nearly 20 billion dollars. Now, the thought of “Can there be a swap line opened from the U.S. Central Bank Fedreserve ?” is in question.