Lira firms against dollar as Turkey searches for foreign funds
The recently embattled Turkish lira edged up on Friday and held gains from late Thursday following reports that officials held talks with counterparts in Tokyo, London and elsewhere over new possible foreign funding.
The lira, which hit a record low of 7.269 last week, stood at 6.917 against the dollar at 08:47 GMT, after data showed that measures taken to curb the coronavirus pandemic weighed heavily on the fiscal budget and on housing sales
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Treasury and central bank officials have held bilateral talks in recent days with counterparts from Japan and the United Kingdom on setting up currency swap lines, and with Qatar and China on expanding existing facilities, Reuters news agency reported on Thursday, citing officials.
Cevdet Yilmaz, the ruling AK Party's deputy chairman for foreign affairs, confirmed that Turkey is seeking swap agreements.
"We are having negotiations with different central banks for swap opportunities," he told a panel discussion on Thursday, adding: "It is not only the US, there are also other countries." He did not elaborate further on details.
The push comes after the lira has fallen under severe pressure, limiting Ankara's capacity to address concerns over its depleted foreign reserves and hefty debt obligations.
An official told Reuters that Turkey was feeling confident after the talks. But it was unclear how close it may be to securing any deals as the coronavirus pandemic stretches governments and central banks like never before.