Qatar and Turkey central banks sign swap agreement: report

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Turkey's President Recep Tayyip Erdogan (R) and the Emir of Qatar Sheikh Tamim bin Hamad Al-Thani. AFP PHOTO / TURKISH PRESIDENTIAL PRESS SERVICE / Kayhan OZER

Qatar and Turkey’s central banks have signed a currency swap agreement to provide liquidity and support for financial stability, Qatar’s central bank said on Sunday, days after Turkey’s Gulf ally pledged $15 billion in support, Reuters reported.

The agreement, which was signed by the heads of the two central banks on Friday, will establish a two-way currency exchange line, the Qatar Central Bank said in a statement posted on its website.

Qatar’s emir this month approved a package of economic projects, investments and deposits for Turkey, giving a boost to the battered lira currency, which has been hit by a widening currency crisis.

Turkey has recently been faced with low national currency value, high inflation and enormous foreign debt, although the Turkish government describes them as an “economic attack” against the country.

Also, a row between Turkey and the US over an American pastor’s trial on “terrorism” charges has accelerated the loss in value of the lira, which plunged to 7.20 against the dollar previous week.

Qatar has been a close ally of Turkey during President Recep Tayyip Erdoğan’s term in office.

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