Goldman Sachs says Turkey’s swap deal won’t work

The Central Bank has announced today that about $ 4.7 billion in swap agreements have been concluded with the UAE. After this announcement, Goldman Sachs shared a note saying “We do not consider the swap agreement to be an improvement that will have a significant positive effect”.

The central bank (CBRT) made a written statement saying, “Today, bilateral currency swap agreement was signed between the Central Bank of the Republic of Turkey, the United Arab Emirates (UAE) central bank (BAEMB) for UAE dirham (AED) Turkish lira (TRY) currencies.”

The statement continued as follows: “The nominal size of the swap agreement is mutually 18 billion dirhams and 64 billion TL. A statement containing the same information came from the Central Bank of the UAE, simultaneously.

Turkey and the UAE have been competing with each other for influence in the countries of the region since the Arab uprisings a decade ago. The two countries had supported rival sides in the civil war in Libya, and differences of opinion between the countries had also manifested themselves in the tension between the Eastern Mediterranean and the Gulf Arab states. Relations between the two countries are on the way to improving with the process of signing a number of important economic agreements between the UAE and Turkey, which took place during the visit of Abu Dhabi officials to Turkey on November 24, Dec.

SOURCE: halktv.com.tr/ekonomi/abdli-bankadan-dikkat-ceken-swap-yorumu-ise-yaramayacak-661087h