Turkey is set to sign a $1 billion currency swap deal with Azerbaijan

Turkey’s central bank is set to sign a 1 billion euro ($1.14 billion) currency swap deal with its Azerbaijani counterpart in the coming weeks, sources said on Thursday.

Along with previous reports, sources in Baku confirmed the size of the deal to Daily Sabah.

Turkey has recently entered into several swap deals to bolster its hard currency reserves, the latest concluded on Wednesday with the United Arab Emirates (UAE).

The Central Bank of the Republic of Turkey (CBRT) has signed a swap agreement with a face value of 18 billion UAE dirhams and 64 billion TL ($4.7 billion) with its Emirati counterpart.

The central bank has swap deals with China, Qatar and South Korea worth around $23 billion (TL 260.66 billion). They encourage exchanges in local currencies and increase the gross reserves of the central bank.

Turkey had also previously sought deals with central banks in the United States, Britain, Russia and Malaysia, Reuters reported.

In a bid to slow the national currency’s crash, the central bank last year announced five direct market interventions that bankers said totaled $10 billion before unveiling a program to protect the lira.

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