Currency swap

The Turkish Lira cheered Central Bank Governor Şahap Kavcıoğlu's announcement late on June 22 that the country was in talks to secure currency swap agreements with four countries and was close to a deal with two of them.

Kavcıoğlu's remarks came during a meeting with bank executives, according to media reports.

The swap deal limit between the central banks of Turkey and Qatar has been amended to $15 billion equivalent of the Turkish lira and Qatari riyal.

According to a statement from the Turkish Central Bank (CBRT) on May 20, the move aims to facilitate bilateral trade in respective local currencies and to support the financial stability of the two countries.

Turkey is conducting talks to establish swap lines with members of G20, with more than one swap line possible, said the country's treasury and finance minister.

"We are doing one-to-one swap negotiations with G20 countries with which we have a trade deficit and a free trade agreement," Berat Albayrak said in a closed-door online meeting with international investors.

Turkish Treasury and Finance Minister Berat Albayrak has ensured international investors that Turkey's reserves are sufficient and Ankara has been holding swap line talks with other countries.

The Turkish Central Bank's reserves are adequate to meet short-term needs, the treasury and finance minister has said, highlighting that its gross reserves stood at $53 billion as of April 24.

"Our country has kept its current account balance [stable] and it is not in financial need from any channel," Berat Albayrak told daily Sabah on May 4.

The European Central Bank (ECB) and the National Bank of Bulgaria (BNB, the central bank) have set up a swap line to ensure liquidity of up to two billion euros, the BNB said on Wednesday. The line will be in force until the end of 2020 or until needed. The maximum maturity in respect of each withdrawn amount will be three months, BTA reported.

Turkey is holding talks with central banks about swap agreements, the Turkish Central Bank (TCMB) Governor Murat Uysal said on April 19, as Ankara introduces measures to tackle the economic impact of the coronavirus pandemic.

The Central Bank of Turkey (CBRT) has announced that Turkish lira currency swap transactions would be executed with widened periods.

Turkey's Central Bank on Thursday raised the transaction limit of total swap sales which have not matured in the Turkish lira currency swap market.     

The Turkish unit of Chinese lender ICBC completed a 450 million Turkish Lira ($132.55 million) swap transaction at the end of November, banking sources said on Dec. 8, marking the first such deal under an agreement between the two countries.