Erdogan says Gulf states sent cash relief for Turkey as lira hits record low
The Turkish lira's losses this year have largely come since devastating earthquakes caused widespread devastation
Turkish President Recep Tayyip Erdogan on Thursday said Gulf states recently sent cash funds to Turkey to help relieve the central bank and markets, as his country’s currency hit a record low ahead of Sunday’s runoff presidential election.
"Our economy, banking, and financial system are quite strong. Meanwhile, some Gulf states and such stocked money in our system. This is recent and this relieved our central bank and market, even if for a short while," Erdogan told CNN Turk.
He added that he intends to meet and thank the Gulf leaders next week. Seeking to extend his two-decade rule in the Sunday vote, Erdogan did not name the countries nor specify when or how much funding arrived in Turkey.
Meanwhile, the Turkish lira weakened to 20 against the U.S. dollar on Friday and continued to hover near that level. It has dropped 6.4 percent so far this year.
The lira's losses this year have largely come since devastating earthquakes in February that left over 50,000 people dead and caused widespread devastation in a large region of southern Turkey.
Ankara has secured some $28 billion in currency swap deals in recent years with the United Arab Emirates, Qatar, China, and South Korea – most of which are believed to be in the Turkish central bank's reserves.
But economists have argued that many of Turkey's problems are attributable to Erdogan's unconventional economic strategy, which turned many foreign investors away from the once-promising emerging market.