DUBAI (Reuters) – 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.
Turkish lira banknotes are seen in this picture illustration in Istanbul, Turkey August 14, 2018. REUTERS/Murad Sezer/Illustration
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.
Reporting by Saeed Azhar in Dubai; Writing by David Dolan; editing by David Evans