Turkey is moving to seek help from its allies to arrange urgent financing deals in preparation for preventing the currency collapse in the country
The Turkish government requested assistance from its foreign allies as part of its attempt to arrange urgent financing, in preparation for what is believed to be a new currency crisis in the country, according to what Turkish officials revealed.
Turkish treasury officials and the Central Bank of Turkey had held bilateral talks during the past days with their counterparts in Japan and Britain to launch currency exchange lines, in addition to discussing increasing the volume of facilities with Qatar and China.
For his part, the Deputy Chairman of the ruling Justice and Development Party said today, Thursday, that Turkey is seeking exchange agreements, adding: “We are conducting negotiations with central banks.
Not just the United States, there are other countries”.
The Turkish lira fell to an unprecedented level during trading last week, which increases concern about Ankara’s foreign reserves, which are already declining, in addition to the increasing debt burden.
Analysts say that if Turkey is unable to secure financing in the tens of billions of dollars, it will face the risk of a currency exchange rate collapse, similar to what happened in the summer of 2018, when the lira lost half its value for some time, in a crisis that raised global concerns.
This comes in light of the spread of the Coronavirus, which infected more than 140,000 people in the country and caused the death of 4 thousand, and caused the stagnation of the global economy, which is the most violent since the thirties of the last century.
