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Kuwait denies injecting KD 500m to prop up lira

KUWAIT: Kuwait has rebuffed as “ungrounded” reports that it injected KD 500 million ($1.6 billion) to back the Turkish lira, which has been in free fall over deteriorating ties with the US. Denying such reports, the Kuwaiti Ministry of Finance said in a statement that Finance Minister Nayef Al-Hajraf met Turkish Minister of Treasury and Finance Berat Albayrak at Kuwait International Airport on Sunday evening. During the meeting, both ministers addressed the latest economic situation in Turkey, where Kuwait has various investments, according to the statement. But they did not touch upon any possible support of the Turkish currency, nor did they make any financial or investment decisions, it confirmed.

Meanwhile Turkish President Tayyip Erdogan yesterday accused “economic terrorists” of plotting to harm Turkey by spreading false reports and said they would face the full force of the law, as authorities launched investigations of those suspected of involvement. The lira currency, which has lost more than 40 percent against the US dollar this year, pulled back from a record low of 7.24 earlier yesterday after the central bank pledged to provide liquidity, but it remained under selling pressure and its meltdown continued to rattle global markets. (Kuwait times)