Jefferies strategist Durukal Gun told Bloomberg that Washington could extend a dollar swap line to Turkey ahead of its upcoming election. The proposal would inject hard‑currency liquidity into Istanbul's central bank, shoring up reserves that have been pressured by a weakening lira. Such a move mirrors the emergency line the U.S. set up for Argentina in 2023.

Investors watch Turkey's foreign‑exchange market closely; a swap line would likely calm the TL‑USD spread and reduce premiums on sovereign bonds. Analysts estimate that a modest facility of a few billion dollars could tighten financing conditions, making it cheaper for the government to service debt and for corporates to import essential inputs. Market confidence often hinges on visible U.S. backing.

If Washington proceeds, the swap would be negotiated through the Federal Reserve and the Central Bank of the Republic of Turkey, with repayment tied to future currency sales. The timing suggests policymakers aim to pre‑empt a sharp devaluation that could spill over into regional markets. The arrangement would signal that Turkey remains eligible for emergency liquidity support. It would be activated on demand.