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Turkey, UAE sign $ 5 billion foreign exchange deal

Turkey, UAE sign $ 5 billion foreign exchange deal

The central banks of Turkey and the United Arab Emirates (UAE) have signed an exchange agreement of a nominal size of 18 billion UAE dirhams and 64 billion Turkish lira ($ 4.7 billion), the Republic of Turkey (TBA) announced on Tuesday.

“The agreement, which is designed to promote bilateral trade with the aim of further strengthening economic cooperation between the two countries, will last for a period of three years, with the possibility of extension through mutual agreement,” the TCMB said. Turkish daily Sabah, revealing that UAE Central Bank Governor Khalid Mohamed Balama and TCMB Governor Sahap Kavtzioglu signed the agreement.

“The signing of this agreement with the Central Bank of the Republic of Turkey reflects the desire of every nation to strengthen bilateral cooperation in financial matters, especially in the fields of trade and investment between the two countries,” Balama was quoted as saying.

Kavtzioglu, for his part, said the agreement shows the two central banks’ commitment to further bilateral trade to boost economic relations between the two countries.

Earlier in December, reports said the TCMB was in talks with counterparts in the United Arab Emirates and Azerbaijan to secure foreign exchange lines, with opposition leaders accusing Turkish President Recep Tayyip Erdogan of countries begging for money.

Turkey and the United Arab Emirates have recently taken steps to ease strained relations. The two countries have seen their ties affected by regional tensions, including the conflict in Libya, where the United Arab Emirates and Turkey have sided with each other in recent years.

Turkey and the United Arab Emirates signed a total of 10 agreements on energy, environment, finance and trade during the visit of the Crown Prince of Abu Dhabi, Mohammed bin Zayed, to Ankara in November. The UAE has also allocated $ 10 billion for direct investment in Turkey, said the CEO of the Abu Dhabi Developmental Holding Company.

The TCMB has exchange agreements with China, Qatar and South Korea worth about $ 23 billion. They are encouraging trade in local currencies and boosting the central bank’s declining gross reserves, while the Turkish opposition says they are already depleted.

Petros Kranias

Source From: Capital