Turkey, UAW to Build Exchange Reserves 01/19 06:11
ANKARA, Turkey (AP) -- Turkey and the United Arab Emirates have agreed to a
currency swap deal equivalent to $4.74 billion to boost Turkey's depleted
foreign exchange reserves, the Turkish central bank announced Wednesday.
Under the agreement reached between their central banks, Turkey and the UAE
agreed to swap 65 billion Turkish lira and 18 billion UAE dirham for a period
of three years, with the possibility of extending the deal further.
The agreement aims to help Turkey's reserves following a series of
interventions by the central bank, which sold foreign currency to prop up the
lira amid a currency crisis.
It comes as Turkey and the UAE have taken steps to improve relations
following years of tensions. Turkey and the UAE found themselves on opposing
sides of regional conflicts, including a proxy conflict in Libya and disputes
in the Gulf and the eastern Mediterranean.
Abu Dhabi's powerful crown prince visited Ankara last month, making his
first official trip to Turkey since 2012 and the highest-level visit by an
Emirati official in recent years.
"Signing this agreement with the Central Bank of the Republic of Turkey
reflects each nation's desire to enhance bilateral cooperation in financial
matters, particularly in the fields of trade and investments between the two
countries," a Turkish central bank statement quoted UAE central bank chief
Khaled Mohamed Balama as saying after the signing ceremony.
His Turkish counterpart, Sahap Kavcioglu said, "This agreement demonstrates
the two central banks' commitment to deepen bilateral trade in local currencies
in order to advance economic and financial relations between our countries."