S&P Global Ratings has commented on currency swap to be signed between Azerbaijan and Turkey in the near future, APA-Economics reports citing the Agency.
"We understand that there are discussions between the central banks of Azerbaijan and Turkey with a plan for the CBA to provide a swap line to the Central Bank of Turkey (CBRT) to help bolster the CBRT's foreign exchange reserves. Although there are no specific details available so far, we view the possible transaction as largely politically motivated and do not expect it to prove a material drain on CBA's international reserves," says S&P
Note that according to the sources in the Turkish Government, Turkey’s central bank will sign a 1 billion euro ($1.14B) currency swap deal with Azerbaijan. The Central Bank of the Republic of Turkey (CBRT) inked a swap agreement with a nominal size of 18 billion UAE dirhams and TL 64 billion ($4.7 billion) with its Emirati counterpart.