Azerbaijan to sell US dollars to Turkey
In the coming weeks, Turkey is preparing to sign a swap agreement with Azerbaijan in the amount of 1 billion euros. It is reported by Middle East Eye with reference to Turkish officials.
“The agreement is almost ready,” said a senior Turkish official.
The agreement is one of several swap agreements under which Turkey will replenish its foreign exchange reserves.
A currency swap is the simultaneous purchase and sale of one currency for different periods (usually for cash and forward) in relation to another. In this type of swap, two parties agree on exchange rates for a specific day and an exchange rate for a day in the future.
It is expected that the Azerbaijani side will sell dollars to Turkey at the current rate per lira.