Central banks of Qatar and Turkey sign currency swap deal

H.E Sheikh Abdullah bin Saoud Al Thani, the Governor of Qatar’s Central Bank (QCB) has signed a currency swap agreement with Murat Cetinkaya, the Governor of the Central Bank of the Republic of Turkey, signaling greater economic cooperation between the two countries.

In a move that underscores the growing cooperation between Turkey and Qatar, the central bank of both countries have signed a currency swap deal. The agreement, which essentially is a financial support, places a plank underneath Turkey’s currency, the lira, as well as provides Turkey with much needed liquidity.

The development, which occurred on Sunday comes in the wake of Turkey’s Gulf ally pledging $15 billion in financial support.

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

Earlier this month, Qatar’s Emir approved a package of economic projects, including deposits and investments for Turkey, giving a job of life to Turkey’s battered currency. Turkey has been badly hit with a widening currency crisis.

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