DUBAI  - Qatar and Turkey's central banks have signed a currency swap agreement to provide liquidity and support for financial stability, Qatar's central bank said on Sunday, days after Turkey's Gulf ally pledged $15 billion in support.

The agreement, which was signed by the heads of the two central banks on Friday, will establish a two-way currency exchange line, the Qatar Central Bank said in a statement posted on its website.

Qatar's Emir this month approved a package of economic projects, investments and deposits for Turkey, giving a boost to the battered lira currency, which has been hit by a widening currency crisis.

 

(Reporting by Saeed Azhar in Dubai; Writing by David Dolan; editing by David Evans) ((david.dolan@tr.com; +90 212 350 7046; Reuters Messaging: david.dolan.thomsonreuters.com@reuters.net))