QCB, Turkey’s central bank sign currency swap pact

DOHA: Qatar Central Bank (QCB) and the Central Bank of the Republic of Turkey (CBRT) signed a Currency Swap Agreement to promote bilateral cooperation between the two central banks by establishing a two-way currency exchange line.

The signing ceremony was held yesterday at the Qatar Central Bank headquarters.

The agreement was signed by Governor of Qatar Central Bank (QCB), H E Sheikh Abdullah bin Saoud Al Thani, and the Governor of the Central Bank of the Republic of Turkey, Murat Cetinkaya.

The swap would facilitate exchange of trade between the two countries while providing liquidity and support for financial stability.

A number of officials from both sides attended the signing ceremony.

Ambassador of Qatar to Turkey, Salem bin Mubarak Al Shafi said the other day, many Qatari citizens went to the currency exchange outlets with tens of millions of dollars to buy the Turkish lira in order to support and revive the strength of Turkish currency, as Turkey is a strategic ally of Qatar.

“We renew our firm stand with the brotherly Turkish people in their present ordeal”, he said, stressing: “Our strong relations with the Republic of Turkey enjoy a special status among our people.”

Turkey’s currency had bounced back from record lows after Amir H H Sheikh Tamim bin Hamad Al Thani issued directives on Wednesday that would see Qatar provide a host of economic projects, investments and deposits worth a total of QR55bn ($15bn) to support the Turkish economy.

The lira rallied by almost 6 percent after the Amir’s directives and a separate move by Turkey’s central bank to boost the finances of the country’s banks, international media reported. “After days of heavy losses, the lira has staged a recovery. The currency has gained over 5 percent today (Wednesday) to trade around 6 lira to the US dollar, compared with a record low of 7 earlier this week”, The Guardian reported.

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