TL Gains Strength Ahead of Erdogan-Biden Meeting

With the new swap deal announced, the Turkish lira strengthens against the US dollar ahead of the meeting.

TL gains strength ahead of Erdogan-Biden meeting. The Turkish lira was recorded as the currency that lost the most value against the US dollar last week. TL started the new week by keeping its placement on the list. The USD/TL exchange rate, which was traded at the level of 8.60 until Thursday last week, ended the week around 8.39 after falling after the announced US inflation data. After starting the new week with a flat course, exchange rate experienced a sharp decline and was pulled up to 8.31.

Swap Agreement with China

Upon questions about the status of the Central Bank's reserves and the developments in trade with local currencies, President Recep Tayyip Erdogan stated that the Central Bank's foreign exchange reserves climbed to the level of 100 billion dollars. Stating that countries trade in their own local currencies, called “swap” agreements between Central Banks, Erdogan said: "In this context, we recently made a very important agreement with China, which is one of our biggest trading partners. We already had a $2.4 billion swap deal with China before. Now, have raised this figure to 6 billion dollars.”

Markets Focused on the Erdogan-Biden Meeting

Transatlantic relations, the increasing global influence of Russia and China, and climate change will be at the forefront among the topics to be discussed at the NATO leaders summit to be held on June 14, while the S-400 issue and regional developments are expected to be discussed in the meeting to be held between US President Joe Biden and President Erdogan.     Source: Bloomberg HT