After Qatar, Turkey holds talks to exchange currency with other countries

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Source: Ankara – Reuters

Finance Minister Berat Albayrak said that Turkey is in talks with a few countries on possible currency swap agreements.

“From now on, we will study trade in our local currency, and we are in talks with a few countries on exchange swap agreements,” Albayrak said in an interview with state-owned (TRT News) television.

Albayrak mentioned the United States, China, Japan, South Korea, Malaysia and India, without specifically indicating whether Turkey was conducting active discussions of currency exchange with all of those countries.

Last week, Qatar raised a standing line to swap currency with Turkey three times to reach $ 15 billion, in an agreement providing much-needed foreign liquidity.

The Central Bank stated earlier that the amendment of the swap agreement, which dates back to the year 2018, aims to facilitate bilateral trade in the local currency and support financial stability in the two countries.

The Turkish currency touched an unprecedented low level earlier this month as investors feared the decline of the central bank’s net foreign exchange reserves and Turkey’s relatively high external debt obligations, which prompted officials to seek financing from abroad.

It is noteworthy that officials from the Turkish Treasury and the Central Bank opened their counterparts in Qatar and China about increasing the size of existing swap lines, and also spoke with Britain and Japan regarding the possibility of establishing similar facilities.

The Turkish Central Bank said that the amendment of the swap agreement concluded in 2018 with the Qatar Central Bank aims to “facilitate bilateral trade” in the local currency, as well as “to support financial stability in the two countries.”





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