The central banks of Turkey and the United Arab Emirates said on Wednesday they signed a swap agreement worth nearly $5 billion in local currencies, providing a possible source of support as Ankara faces economic turmoil.
The deal aims to promote bilateral trade and strengthen financial cooperation between the two regional rivals that have sought to warm ties in recent months, the banks said. It will last for three years with the possiblity of extension.
Last month Reuters reported, citing officials, that talks between the Turkish central bank and its UAE and Azeri counterparts were wrapping up with at least one deal likely soon.
The nominal size of the deal is 64 billion lira and 18 billion dirham, the central banks said in separate statements.
Turkey could tap the swap line to bolster its depleted FX reserves, after expensive market interventions beginning last month to stem a currency crisis.
Turkey’s central bank has swap deals with China, Qatar and South Korea worth about $23 billion
