Turkish lira resumes fall after Trump sanctions threat

Share

The case of Andrew Brunson, an evangelical Christian missionary from North Carolina who has lived in Turkey for two decades, has become a flashpoint between Washington and Ankara and accelerated a widening currency crisis.

Turkey has been hit by a currency crisis fuelled by a heated row with the United States.

The lira, which earlier this week traded at well over seven to the dollar, had rebounded slightly over the last three days but on Friday it lost almost five percent of its value and was quoted at 6.1 against the dollar.

"We got somebody out for him", Trump said, referring to Turkish President Recep Tayyip Erdogan.

Earlier, US President Donald Trump prefaced Mnuchin's remarks by saying that Turkey had not been a very good friend to the US.

"They want to hold our wonderful pastor", Trump added.

I'm Determined To Keep The Shirt, West Ham Star Insists
Manchester City tried to do the same thing last season in the Champions League. We have started the season great and everybody is happy.

The Turkish lira on Friday resumed a downward fall after rebounding slightly from historic lows over the last three sessions.

On Wednesday, in retaliation, Turkey increased tariffs on several US -origin products, including alcohol and tobacco products and cars.

Turkey has taken advantage of the United States for many years.

Turkish Finance Minister Berat Albayrak, who is Erdogan's son-in-law, and his Qatari counterpart Ali Sharif Al-Emadi were present at the talks in the capital Ankara.

Turkey and the USA are now experiencing rocky relations after Washington imposed sanctions on two Turkish Cabinet ministers for not releasing Brunson. His transfer to house arrest came after Trump asked Israeli Prime Minister Benjamin Netanyahu to assist in Brunson's release, Israeli and United States officials told CNN at the time.

"Yet at the same time (Turkish authorities) are reluctant to adopt orthodox policy frameworks", JP Morgan said.

US Military Bases at Caspian Sea 'Out of Question' - Kazakh Foreign Minister
The Caspian Sea has a number of different species of sturgeon, the fish that yields the highly prized delicacy caviar. Its seabed is estimated to hold 50 billion barrels of oil and nearly 8.4 trillion cubic metres of natural gas.

The lira's collapse has plunged the entirety of the emerging market space into chaos, with contagion causing the likes of the South African rand, the Argentine peso, and the Indonesian rupiah, to slump in response.

But Washington's move has sent Turkey's financial markets into a tailspin: the Turkish lira plummeted more than 18 per cent at one point last Friday to a record low against the USA dollar.

Turkish President Recep Tayyip Erdogan has bristled at such US pressure.

The problem with the new strategy is that it aims directly towards Apple which remains unaffected as Turkey relies on Apple and not the other way around, according toMashable. He is accused of having links to a group that Ankara says was behind the coup.

Turkey's finance minister sparked a recovery in the lira yesterday after he addressed thousands of global investors on a conference call.

The selling has also deepened concerns about the broader economy, particularly Turkey's dependence on energy imports and whether foreign-currency debt poses a risk to banks. He said Turkey has no plans to ask for International Monetary Fund for support with the falling lira.

Turkey promises to calm market jitters over lira nosedive
The US has responded by slapping financial sanctions on two ministers and later doubled steel and aluminium tariffs on Turkey . Mr Erdogan ruled out the possibility of higher interest rates, which economists said are needed to stabilise the currency.

Share