Kuwait: No Plan to Back Turkish Lira with $1.6bn

Kuwait Monday dismissed reports that it has planned to inject $1.6 billion into the Turkish plummeting Lira which lost 40 per cent of its value against the US dollar amid the ongoing diplomatic crisis between Ankara and Washington.

Kuwaiti Finance Minister Nayef Al-Hajraf discussed with his Turkish counterpart Berat Albayrak Turkey’s economic situation on Sunday night but no agreement that the Gulf country will inject $1.6 billion, was tabled or reached, according to state-ran Kuwait News Agency (KUNA).

Turkey’s current Lira (TL) has gone down record low, trading TL 6.57 to $1, after losing 40 per cent of its value as the diplomatic crisis between Ankara and Washington heightened. U.S. President Donald Trump Friday threatened to double tariffs on Turkey’s imports of iron and steel.

The two countries have fallen apart over several issues but more importantly on the situation of a U.S. Pastor held in Turkey over terror-related charges. The U.S. Treasury also last month targeted Turkish Interior and Justice Ministers with sanctions on grounds that both cabinet members have hindered the release of the Pastor.

As Turkey’s economic stability becomes shaky, the Central Bank CBRT, according Turkish Daily Sabah, has moved to introduce measures to “sustain the effective functioning of markets.

The central bank also said it would provide TL 10 billion ($1.5 billion), $6 billion and $3 billion equivalent of gold liquidity to the financial system, the daily reports.

Turkish President Recep Tayyip Erdoğan Monday reassured diplomats in the country that the economy, despite speculative reports promoting negative perceptions, remains intact, solid and strong.