Turkey Gets Swap Deal With Qatar to Bolster Lira as Markets Fret
- Traders brace for thin liquidity amid weeklong public holiday
- First phase of deal expected to be $3b, according to Anadolu
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Qatar agreed to help the Turkish economy weather a currency rout with a credit line to backstop its financial system, the first concrete measure after the Gulf nation pledged as much as $15 billion of investment in Turkey.
The lira weakened, with the prospect of further U.S. sanctions targeting President Recep Tayyip Erdogan’s government keeping traders on edge as the nation’s bond and equity markets closed for a weeklong public holiday. Turkey’s credit rating was cut further into junk territory on Friday by S&P Global Ratings and Moody’s Investors Service.