Turkey very close to $20 billion swap deals with U.K., Japan – report

Turkey is very close to securing a total of $20 billion in foreign currency swaps from central banks in the United Kingdom and Japan, Habertürk news website said on Tuesday.

The deals will amount to $10 billion each, Habertürk reported, without saying where it got the information. Japanese Prime Minister Shinzō Abe is expected to make an announcement on the deal between the two countries during a visit to Turkey on Thursday, it said.

Turkey is in talks with a total of four nations for swap deals, the website said. A similar arrangement with the United States Federal Reserve was not possible because Turkey does not have U.S. government bonds as part of its reserves, it said.

Agreements with two countries have not been reached, officials of the Treasury and Finance Ministry said, according to state-run Anadolu news agency. Negotiations were ongoing with a total of four nations, it said.

The Turkish government is seeking to raise foreign capital to help its economy withstand the impact of the coronavirus pandemic and to restock the central bank’s depleted foreign currency reserves, which have dwindled as policymakers sought to defend a weakening lira.

The lira rose 0.4 percent to 6.85 per dollar on Tuesday, off an all-time low of 7.269 per dollar reached on May 7. The currency has declined 13 percent this year.