Turkey and Qatar signed a bilateral currency swap agreement within the framework of Qatar’s $15 billion investment project into Turkey’s economy, TASS reports on August 20.
Murat Çetinkaya, the head of the Turkish Central Bank, and Abdullah bin Saud Al Thani, his Qatari counterpart, signed the agreement. The signing ceremony took place in Doha, Qatar’s capital. The swap agreement provides each of the parties with access to liquidity in the other country’s currency, bypassing currency acquisition on foreign exchange markets. The first stage of the agreement proposes the allocation of $3 billion.
As a result of the talks between Turkish President Recep Tayyip Erdogan and Emir of Qatar Sheikh Tamim bin Hamad Al Thani, it was announced that the emirate intends to invest $15 billion into the Turkish economy. This stopped the record devaluation of Turkish national currency, which resulted from tensions between Turkey and the US.
On August 10, the US President Donald Trump decided to raise duties on the import of aluminum and steel from Turkey up to 20% and 50% respectively. On August 12, Turkish President Erdogan announced cutting ties with the US.
Source: Rossa Primavera News Agency