Turkey May Seek US Dollar Swap Line Before Election as Jefferies Sees Reserve Boost
Updated
Updated · Bloomberg · Jun 1
Turkey May Seek US Dollar Swap Line Before Election as Jefferies Sees Reserve Boost
3 articles · Updated · Bloomberg · Jun 1
Summary
Jefferies strategist Durukal Gun said Turkey could seek a US dollar swap line from Washington before the election, framing it as a potential pre-vote financial backstop.
A swap line would bolster Turkey’s hard-currency reserves and improve market confidence as policymakers try to steady the lira, curb inflation expectations and limit dollarization.
Gun said support from the Trump administration could mirror a facility extended to Argentina last year, giving Ankara more room to manage financial stress.
Turkish credit-default swaps have risen in recent months as investors priced in greater financial risk, making any US backstop potentially important for borrowing costs and sentiment.