Qatar to provide Turkey $2 billion in currency swaps

Qatar agreed to provide Turkey with $2 billion in currency swaps to help support the Turkish economy, Bloomberg reported, citing a statement by the Turkish central bank.

The monetary authorities of the two countries expanded the size of an existing swap deal to $5 billion from $3 billion, Bloomberg said on Tuesday. The agreement was reached during a visit by President Recep Tayyip Erdoğan to Qatar this week, it said.

Turkey has relied on financing from regional ally Qatar to help stabilise the lira after a currency crisis erupted last August. State-run banks have also worked with the central bank to help stabilise the currency via the swaps market. Turkey has backed Qatar politically during a Saudi-led economic embargo of the Gulf state.

The lira fell 0.3 percent to 5.75 per dollar as of 2:01 p.m. in Istanbul, extending losses this year to 8 percent. It lost almost a third of its value against the dollar in 2018.