Qatar to give another $10 billion in foreign exchange reserve support to Turkey

It is reported that Turkey is in the final stage of negotiations with Qatar for $ 10 billion in financial support, and $ 3 billion of this resource can be transferred by the end of the year.

According to Reuters, based on two Turkish officials and a foreign source, the source can be transferred by swap, eurobond or other method.

The Central Bank of the Republic of Turkey had previously signed a $ 5 billion swap agreement with the Central Bank of Qatar, and this amount was increased to $ 15 billion in 2020.

At the beginning of the week, there were reports from Saudi Arabia that the Central Bank of the Republic of Turkey would be supported with $ 5 billion.

New sources of financing may strengthen the foreign exchange reserves of the Central Bank, which emphasizes that it will continue its strategy of supporting the Turkish Lira with different instruments after interest rate cuts.

Sources told Reuters that at least $ 8 billion is envisaged in the negotiations, but stressed that it could be up to $ 10 billion.

The source, who did not want to be named, said, “2-3 billion dollars of the resource will come by the end of the year, the rest next year. This may be in the form of swaps or eurobonds, but they are also discussing other methods. There is a mutual agreement.”

Another Turkish official said that the focus is on the eurobond in the amount of 2-3 billion dollars that will come this year.