Turkey, Qatar Central Banks Sign Currency Swap Agreement - Reports

Qatar and Turkey's central banks have signed a currency swap agreement to provide liquidity and support for financial stability, Reuters reported on Sunday.

According to Reuters, the agreement signed by the heads of the two central banks, will establish a two-way currency exchange line and support the financial stability. Emir of Qatar Tamim bin Hamad Al Thani said at a meeting with Turkish President Recep Tayyip Erdogan earlier this week that his country would invest $15 billion in Turkey's economy.

The news comes after US President Donald Trump authorized the doubling of steel and aluminum tariffs on Turkey, up to 50 and 20 percent respectively. The Turkish lira briefly fell 20 percent against the US dollar reaching a record low amid the news.

However, Erdogan stressed Saturday that Ankara would not change its policy despite the foreign economic pressure.

US-Turkish bilateral relations have deteriorated over the imprisonment of US pastor Andrew Brunson, arrested in Turkey on suspicion of ties to the Gulen movement, which is accused of orchestrating the 2016 failed military coup in the country. The pastor was since released from prison in late July and placed under house arrest.

In early August, Washington froze the assets of Turkish Justice Minister Abdulhamit Gul and Interior Minister Suleyman Soylu over their alleged "leading roles" in Brunson’s imprisonment, as well as other human rights abuses.

On Thursday, US Treasury Secretary Steven Mnuchin said the United States might take more action against Ankara if Turkey did not release Brunson soon.