04:58 GMT07 May 2021
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    There has been no sign of Turkey backing away from its ongoing stand-off with the US that earlier this week sent the national currency tumbling.

    After a two-day downslide that sent alarm bells ringing across financial markets, Turkey’s currency has finally found its footing.

    The lira bounced back from the record losses it suffered on Thursday, on the strength of a Qatari pledge of $15 billion in “economic projects, investments and deposits" to shore up Turkey's economy, the Associated Press wrote.

    The announcement of Qatar’s bailout came after Turkish President Recep Tayyip Erdogan met with the Gulf kingdom’s Emir, Sheikh Tamim bin Hamad Al Thani, in Ankara on Wednesday.

    The currency gained around two percent against the dollar, trading at around 5.85 per dollar, just as Finance Minister Berat Albayrak prepared to fill international investors in on the current state of the country’s economy.

    Also helping the currency were steps taken by the government to pump additional money into the country’s banks and limit swap transactions. In addition, Ankara has moved to curry favor with European countries by releasing two jailed Greek soldiers and an Amnesty International human rights campaigner.

    The lira has tumbled in recent weeks, dropping to a record low of 7.24 per dollar earlier this week, amid a diplomatic and trade row with Washington.

    The dispute with the United States that has exacerbated investor concerns over Turkey's economy.

    READ MORE: In Russia's Footsteps? Turkey Dumps US Sovereign Debt as Political Rift Deepens

    The United States has imposed sanctions on two Turkish government ministers and doubled tariffs on Turkish steel and aluminum imports over the continued detention of American pastor Andrew Brunson on espionage and terror-related charges.

    Turkey retaliated with some $533 million of tariffs on US imports — including cars, tobacco and alcoholic drinks — and threatened to boycott US electronic goods, above all iPhones.


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