Turkish, Qatari central banks ink currency swap deal

Deal aims to enhance cooperation between two banks by setting a two-way currency exchange line
Monday, 20 August 2018 19:59

Ankara and Doha have signed a swap deal to facilitate trade between the two allies as the Turkish currency is battered by a deepening spat with Washington, the Turkish central bank said Monday.

The first step has been taken after Qatar pledged $15 billion of investment package in Turkey last Wednesday, state-run Anadolu news agency reported citing sources from the Turkish central bank.

The agreement aims to enhance bilateral cooperation between two banks by setting a two-way currency exchange line, Anadolu added.

"Core objective of the agreement is to facilitate bilateral trade in respective local currencies and support the financial stability of the two countries," the Turkish central bank said in a statement on Monday. 

The funding for the first phase of the deal is expected to be worth $3 billion.

Turkey has been rocked over the last weeks by a sharp decline in the value of its lira after US President Donald Trump announced Washington was doubling aluminium and steel tariffs for Ankara.