The emir of Qatar has stated that Qatar will be investing a total of $15 billion in Turkey which is currently in the grips of a currency crisis. While it sounds like a helpful measure, the fact is that the methods being applied to make this happen are incredibly dangerous. They are certain to have major implications for the banking system in Qatar and the sovereign funds of Qatar.
As per sources in the private banking sector in Doha, there has been a recent spate of suspicious activities in the massive reserves and savings in the Qatar Central Bank. These activities are not only related to foreign currencies but also involve local banks in Qatar which are directly associated with the emir of Qatar. The sources have noted that sudden large withdrawals have been made recently and there is a shortage in these areas and currencies. It has also been confirmed that the foreign currencies that were taken out by Qatar have now been converted into the Lira of Turkey. The sources have also confirmed that the declaration made by the emir of Qatar and these kinds of illegal actions are all related. One should also note that Turkish officials were seen in a few Qatari banks including the Central Bank of Qatar over the last few days as Qatar was preparing the $15 billion investment. That certainly goes against the established banking laws, not only domestically but also the international ones. After all, these accounts deal with not only the national income but also the savings of regular citizens. It is still unclear how these suspicious
and illegal processes will be covered up by the government of Qatar.
The same sources have revealed that the Qatari holding companies and sovereign funds are also involved in this
illegal scheme to support the Turkish lira. They have started cutting foreign currency from the budgets that
were earmarked for foreign and domestic projects as well as investments.