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Turkey's Erdogan calls on Turks to buy lira for 'national battle'

11 August, 2018, 20:39 | Author: Shawna Walton
  • The euro has dropped today after the Turkish lira ad Russian rouble plummeted

"Repeated efforts to communicate to the USA administration that none of the stated criteria driving America's tariffs are applicable to Turkey have thus far proven fruitless", he said.

The currency has fallen 66 per cent since the start of the year, pushing up the cost of goods for Turkish people and shaking worldwide investors' confidence in the country.

President Donald Trump says the United States has chose to increase tariff rates on Turkish steel and aluminum.

Earlier on Friday, Trump ramped up his attack on Turkey by doubling United States tariffs on Turkish aluminium and steel imports to 20 percent and 50 percent, respectively.

The numbers have been sliding ever since President Erdogan's election victory in June, with concerns among foreign investors about his control of monetary policy as well as the birth of Turkey's new presidential republic. Some 4 million displaced people, most them from Syria, are now living in Turkey. Financial upheaval risks further destabilizing an already volatile region.

Brunson is now on trial in Turkey for espionage and terror-related charges linked to a failed coup attempt in the country two years ago.

President Recep Tayyip Erdogan, who had remained unusually silent until now as the lira crisis mounted, urged Turks to take matters into their own hands.

The president has declared that American importers' reliance on foreign metals poses a national security risk to the USA, and he also has increased the cost of these imports on Japan, Turkey and members of the European Union, the paper reported. The White House said he had authorised them under Section 232 of USA trade law, which allows for tariffs on national security grounds.

"Officials are reportedly preparing stimulus measures in a bid to prop up growth, but these would simply exacerbate Turkey's economic vulnerabilities and could ultimately tip the country into a full-blown crisis, " Capital Economics said in a commentary.

Tensions between the North Atlantic Treaty Organisation allies also flared in May 2017 after Erdoğan's personal security forces attacked demonstrators protesting his visit to the Turkish Embassy in Washington, D.C. Spanish banks, in particular, are the most exposed, with over $80 billion in Turkish loans. "This will be the response to those who have declared an economic war".

The lira, which has always been falling on worries about the government's influence over monetary policy and the US tensions, plunged more than 18 percent at one point on Friday to a record low against the dollar.

"This is a domestic and national struggle", Erdoğan said, according to The Associated Press.

"Some countries have engaged in behavior that protects coup plotters and knows no laws or justice", he said. He added that the country will continue to enjoy good economic relations with several major nations.

Erdogan has blamed outside forces for trying to bring down Turkey's economy.

Has the moment finally arrived when political and economic ties between Turkey and the United States snap, ending what was a very close partnership dating back to the late 1940s?

People change money at a currency exchange office in Istanbul, Turkey, Aug. 10, 2018. Gulen has denied the allegation.

His cause resonates with Mr Trump's Christian conservative supporters.

Last week the United States government announced sanctions against Turkey's interior and justice ministers, to which Ankara responded by freezing the assets of two American officials in Turkey.

Erdogan enjoys the support of many Turks even though food, rent and fuel prices have all surged. It is obvious how it will be done: "since the final decision-maker of all policies in the new regime is the president, the responsibility of regaining confidence is on his shoulders", said Seyfettin Gursel, a professor at Turkey's Bahcesehir University.

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