ECB rejects Turkey's swap request

In what comes as yet another backlash for Ankara, the European Central Bank (ECB)  rejected a request by the Turkish Central Bank (TCMB), which was last month was submitted to the ECB for a bank swap, according to an exclusive report by the Athens-based Kappa News.  

Turkey has been facing significant monetary pressures over the past two months due to the pandemic crisis, which has dramatically affected the country's current trade balance and put significant pressure on the Turkish lira.

TCMB has used tens of billions of dollars in its foreign exchange reserves over the past two months to defend the pound in foreign exchange markets, reducing the amount of these stocks to dangerous levels. 

In April, it became known that TCMB had also applied to the Federal Reserve, but the central bank of the United States seems particularly reluctant to reach a currency swap agreement with Turkey.

Yannis Koutsomitis, Editor of Kappa News, shares the details with Yavuz Baydar, Editor of Ahval.