Turkey and Qatar extend currency swap deal

Turkish_lirasAn expanded swap agreement between Qatar and Turkey is expected to boost the latter’s currency reserves by as much $2 billion. According to the Turkish central bank, the deal has increased the limit of the currency exchange, in which Turkey will swap lira for Qatari riyal, from $3 billion to $5 billion. The swap is tantamount to a loan. A statement from Turkey’s central bank said: “The core objectives of the agreement are to facilitate bilateral trade in respective local currencies and to support the financial stability of the two countries.” The arrangement follows a recent visit to Qatar by Turkey’s president Erdogan and comes at a time when Turkey’s currency reserves have come under scrutiny from investors following last year’s currency crisis. Turkey and Qatar have also become political as well as economic allies in recent years. Following the Saudi-led economic blockade against Qatar in 2017, President Erdogan stood with Qatar. And during his recent visit he also opened a new Turkish military base in Qatar which he described as a symbol of “brotherhood, friendship, solidarity and sincerity” between the two countries. In return for the political support and following its currency crisis, Qatar promised to invest $15 billion in Turkey. No sizeable public investments have been seen so far and the newly extended currency swap is tantamount to a borrowing agreement as opposed to an investment. The promised $15 billion investment was reviewed at the latest meeting, according to the statement from Turkey’s central bank, and a number of memorandums of understanding to encourage greater cooperation around financial services were also signed. ©2019 funds global mena

Executive Interviews

INTERVIEW: ‘Financing is the blood of Iran’s economy’

Amid a fresh wave of American sanctions, Romil Patel spoke to Meysam Hamedi, director of financial markets and instruments at Iran’s Securities & Exchange Organization (SEO).

INTERVIEW: Totally mega

In 2016, global consulting firm PWC forecast the emergence of five global ‘megatrends’ in the next two decades. Stephen Anderson, its Middle East clients and markets leader, talks about their...

INTERVIEW: Protecting the investment

Rasmala’s trade finance fund recently passed $100 million in assets. Doug Bitcon, head of credit strategies, explains why he has to be hands-on.

EXECUTIVE INTERVIEW: A natural interest in the topic

Since 2016, Guillermo Ortiz has been a chairman of Latin America’s BTG Pactual. The former central banker of Mexico talks to Nick Fitzpatrick.


Middle East Investor Roundtable 2020: Dimensions of diversification

Investors in the Middle East consider the tools that will be needed to navigate the Covid-19 crisis, the continued appetite for dividend and why it’s all about tech. Chaired by Romil Patel.

South Africa asset management roundtable: Global rebound on ice

Experts discuss the investment implications of the coronavirus pandemic, a delayed rebound in global growth and dealing with South Africa’s energy issues head on. Chaired by Romil Patel in Cape Town.

South African roundtable: Taking the bull by the horns

Our panel discusses Chinese investment in Africa, financial institutions’ contribution to economic sustainability and regulatory concerns. Chaired by Romil Patel in Cape Town.

ROUNDTABLE: Hooked to the global caravan

With the MENA region at a tipping point, our panellists talk about economic diversification, the impact of regulation and the delayed Saudi Aramco listing. Chaired by Romil Patel in Dubai.