Turkey triples swap lines with Qatar to $15 billion

Turkey has increased cross-currency swap lines with the Qatari central bank by the equivalent of $10 billion, the Turkish central bank said.

The swaps in Qatari rials for Turkish liras were tripled from a previous $5 billion, the central bank said on Wednesday.

Turkey is seeking foreign funding for its economy after the central bank spent tens of billions of dollars of its foreign exchange reserves to bolster the lira and the outbreak of COVID-19 ravaged economic output.

The Turkish lira traded down 0.3 percent at 6.79 per dollar as of 9:41 a.m. in Istanbul following the announcement.

The Turkish authorities have been in talks with several countries to secure swap lines, officials of the Treasury and Finance Ministry said this week.

The lira climbed by more than 1 percent on Tuesday after the Habertürk news website said Ankara was very close to signing swap deals with Japan and the United Kingdom worth a total of $20 billion.

Turkey obtained $3 billion of the swaps from Qatar at the height of a currency crisis in August 2018, expanding the deal to $5 billion in November last year.