Turkey’s central bank may secure additional financing from Qatar as it seeks currency swap deals with foreign counterparties, the Dünya newspaper reported.
An existing swap line with Qatar, which totals $15 billion, may be increased to $20 billion, Dünya said, citing unidentified people with close knowledge of the matter.
The Turkish central bank is in talks with four counterparties to secure additional swaps to help bolster the lira, governor Şahap Kavcıoğlu said this week. The lira has sunk to successive record lows against the dollar and euro over the past two years even after the central bank spent tens of billions of dollars of its reserves in defence of the currency. Net reserves, which include liabilities such as the swaps, are deeply in negative territory.
Azerbaijan’s central bank may become the first to approve a swap deal, Reuters reported on Wednesday, citing four Turkish sources with knowledge of the matter. Other candidates for deals included Malaysia, South Korea, Russia, Britain and other countries in Asia, it said.
Earlier this month, President Recep Tayyip Erdoğan said Turkey had agreed with China to increase an existing currency swap facility to $6 billion from $2.4 billion.
The lira was trading down 0.1 percent at 8.64 per dollar on Thursday. It hit a record low beyond 8.8 per dollar at the start of June.