Turkey and Qatar’s central banks raised the currency swap limit to $15 billion from $5 billion, the Central Bank of Turkey announced Wednesday.
A statement by the central bank noted that the goal of the agreement is to facilitate trade in local currencies and support financial stability in both countries.
Turkey has been in talks to establish swap lines with members of G-20, with more than one swap line possible, the country’s Treasury and Finance Minister Berat Albayrak said early May.
“We are doing one-to-one swap negotiations with G-20 countries with which we have a trade deficit and a free trade agreement,” Albayrak said in a closed-door online meeting with international investors on May 6.
He also said Turkey did not plan to negotiate swap lines with the International Monetary Fund (IMF).
Turkish and Qatari central banks had agreed to increase the size of a currency swap deal to $5 billion last year following an official visit by President Recep Tayyip Erdoğan.
The previous agreement worth $3 billion was signed in August 2018 after Qatar pledged a $15-billion investment package for Turkey.
