The Turkish central bank said on Wednesday that it had increased the size of a currency swap agreement with Qatar from five billion dollars to the equivalent of 15 billion dollars, in an agreement that provides much needed foreign liquidity to compensate the reserves that have been depleted and contribute to the stability of the Turkish lira.
Ankara is seeking urgent funding from Doha and other countries to avoid the collapse of its currency, as analysts say it may need tens of billions of dollars.
A senior Turkish official told Reuters that talks were continuing.
The Turkish Central Bank said that the currency swap agreement with its Qatari counterpart, which raised the current agreement limit of five billion, would support financial stability and trade.
The Turkish currency touched an unprecedented low level earlier this month, with investors apprehensive about the decline in the central bank’s net foreign exchange reserves and Turkey’s relatively high external debt obligations, which prompted officials to seek financing from abroad.