On Monday, August 20, it was reported that a currency swap agreement established by the Turkish and Qatari central banks will have an overall limit of $3 billion.
The regulators of both countries have signed a currency swap agreement to provide liquidity and support for financial stability. That came days after Qatar authorities pledged to invest $15 billion in Turkey.
The core objective of the deal was to support bilateral trade in local currencies. Qatar authorities also approved a package of economic projects, investments, and deposits for Turkey. According to experts, this move significantly supported the Turkish lira, which collapsed because of the unstable economic situation. The fall of the Turkish currency was fueled by concerns over the actions of Turkish President Recep Tayyip Erdogan regarding monetary policy, as well as the confrontation between Ankara and Washington.
