Turkey’s new attempt to save the currency
Turkey is moving toward several currency swap deals with friendly countries; this means making deals with each other in local currency without holding them to dollars in an attempt to save its currency, which reached its lowest level last week, before the state intervened with several measures to raise its value.
- Turkish lira moved to a low record versus the dollar, euro and pound
- Turkey – is in the throes of a currency crisis
Turkish Central Bank Governor Shehab Cavusoglu said: “The bank could sign two currency swap deals in two weeks”, Turkish news channel Bloomberg HT reported, citing Turkish newspaper Zaman.
Reuters reported the day before yesterday that talks between the Turkish Central Bank and its counterparts in Azerbaijan and the United Arab Emirates on a possible currency swap agreement are about to end.
The agency reported yesterday that the Turkish lira improved by 3% today, after Turkish President Recep Tayyip Erdogan said that the government and the central bank will provide guarantees for some deposits in local currency in exchange for foreign exchange losses.
The Turkish lira hit an all-time low of 18.4 against the dollar last Monday, before changing course and climbing after the announcement of the rescue plan.
Turkey signed a currency exchange agreement with Qatar last year, which is still in force. On December 7, Qatar and Turkey announced the extension of a currency exchange agreement between their central banks.
The Central Bank of Turkey received $10 billion last year from a swap agreement that Ankara concluded with Doha in May 2020.
