The New Arab Logo

Breaking News
Turkey triples Qatar currency swap line to $15 billion Open in fullscreen

The New Arab & agencies

Turkey triples Qatar currency swap line to $15 billion

Turkey ran down its hard currency buffers earlier this year [Getty]

Date of publication: 20 May, 2020

Share this page:
  • 0

  • twitter
Turkey has turned to Gulf ally Qatar to secure much-needed currency amid economic pressure from the coronavirus crisis.

Tags:

Turkey, Qatar.

Turkey has tripled its currency swap agreement with Qatar to $15 billion equivalent, securing desperately-needed foreign exchange after it ran down its hard currency buffers this year.

The Turkish central bank said the adjustment to the swap agreement, which previously stood at $5 billion, aimed to facilitate bilateral trade and support the two states' economic stability.

Prior to the coronavirus crisis, Turkey was recovering from its first recession in a decade. The economy now appears to be the brink again, with President Recep Tayyip Erdogan running out of options.

With the risk of mass unemployment, a collapse of the tourism sector and an unstable currency, "the situation is extremely bad", said Atilla Yesilada, an economist at GlobalSource Partners think tank told AFP.

Erdogan unveiled a stimulus package in March before the virus hit Turkey hard, infecting more than 150,000 people, but critics say the $15 billion plan is insufficient.

With the daily coronavirus death toll now falling, Erdogan recently announced a gradual lifting of restrictions in May and June to spur the world's 19th largest economy.

Ankara has avoided implementing a stricter nationwide lockdown over the course of the crisis, a move analysts say is motivated by a desire to keep an already hard-hit economy afloat.

Turkey's annual gross domestic product (GDP) amounts to about $770 billion.

Economists, nonetheless, forecast a painful second recession, and some say Erdogan will have to seek help from the International Monetary Fund (IMF), an option he has always rejected.

Follow us on FacebookTwitter and Instagram to stay connected

The New ArabComments

Most Popular

Most Popular

    Read More