Turkey is a 'target of economic war', Erdogan says

14 August, 2018, 03:24 | Author: Mary Valdez
  • Iranian Foreign Ministry spokesman Bahram Ghasemi

The threat to the lira, the stock market and the economy has drawn a sharp reaction from Erdogan, who has promised to look for new economic friends, including among traditional United States adversaries.

The bank also revised reserve requirement ratios for banks, in a move also aimed at staving off any liquidity issues.

A currency crisis blew up last week in the Turkish lira on investor concerns over Prime Minister Tayyip Erdogan's increasing control over the economy and deteriorating relationship with the United States.

Turkey's stock market has fallen 17 per cent, while government borrowing costs have risen to 18 per cent a year.

The Turkish leader has been sanguine over the punitive measures announced by the U.S., saying that while Turkey's relationship with Washington is at stake it will look for other partners.

"If you pressure us through the dollar, we will look for other ways to carry out our works", he said.

"We will not give in", Erdogan said in a speech Sunday.

"Having been looking to news on whether President Trump will proceed with tariffs on a further $US200 billion of Chinese imports next month as the likely fundamental catalyst for a break lower, the fact it has come for other reasons and well ahead of this, bodes particularly poorly", he said.

"I have just authorized a doubling of Tariffs on Steel and Aluminum with respect to Turkey as their currency, the Turkish Lira, slides rapidly downward against our very strong Dollar!"

The Turkish currency lost nearly 20 per cent of its value against the USA dollar last week and is down 40 per cent since the start of the year.

How to Stop Google from Tracking Your Location
According to the AP, that text is technically true but somewhat misleading. "To me, it's something people should know", he said. The device would still push location-based data to the Google account even with Location turned off.

US President Trump threatens auto tariffs against Canada if trade talks fail
But he reiterated his threat that tariffs on auto imports could be in store for the USA neighbor to the north: " Canada must wait. President Donald Trump took to Twitter Friday evening, praising Mexico and threatening Canada.

Chelsea, Tottenham dispel doubts with winning starts
New Chelsea boss Maurizio Sarri kicked-off his reign at Stamford Bridge with a comfortable 3-0 win at Huddersfield Town. But Benitez that the Magpies are capable of establishing themselves as a competitive Premier League outfit once more.

Agathe Demarais, lead Turkey analyst at the Economist Intelligence Unit, told AFP that "with an overheated and indebted economy, Turkey will require credibly orthodox economic policies, fiscal discipline and central bank independence to reverse the current situation".

On Sunday, Erdogan revealed details of talks between the two countries over the pastor, saying the United States had given Turkey until last Wednesday to hand him over.

The Turkish central bank sought to tamp down concerns Monday with a pledge to provide as much financing as necessary to salvage the country's economy.

The dollar, which has rallied since the lira crisis, was little changed.

"The central bank interpreted the market volatility as unhealthy price movements and has made room for itself to possibly return to its previous corridor policy", a foreign exchange trader at a Turkish bank said.

Erdogan had on Saturday described interest rates as a "tool of exploitation", in remarks that further unnerved markets.

"The country is neither crumbling, nor being destroyed or bankrupt or in a crisis", he said, and added that the way out of the "currency plot" was to boost production and "minimise interest rates".

Turkey's Interior Ministry said it was taking legal action against 346 social media accounts it claimed had posted comments about the weakening lira "in a provocative way".

In late July, the state-owned Industrial and Commercial Bank of China (ICBC) agreed to provide a US$3.6-billion loan package for the Turkish energy and transport sector, Xinhua reported last week. Stocks .XU100 dropped 4 percent, with the BIST blue-chip index down around 50 percent in dollar terms this year.

An important emerging market, Turkey borders Iran, Iraq and Syria and has been mostly pro-Western for decades.

Recommended:



Popular

Broncos fan starts GoFundMe to get rid of Paxton Lynch
They didn't get their initial first down in the game until there was 5 minutes, 47 seconds remaining in the first half. Siemian, who began his career with the Broncos, came on to hit on 11 of 17 passes with one interception.

I fear being fined if I speak out, Pogba says
After a few moments, Sanchez tried to convince Pogba to hand him the ball, but the World Cup victor refused to stand down. However, the Telegraph report insists the Frenchman is set to stay at Manchester United , but wants more backing.

Turkey to retaliate against Trump's metal tariffs
Erdogan appealed to a crowd in the city of Bayburt to exchange dollars and gold for Turkish lira to prop up the plunging currency. As the currency drops, Turkish companies and households with debt in foreign currencies see their debts expand.

Trump retweets Michael Cohen, Frank Luntz denying claims in Omarosa's book
President Trump's lawyer, Rudy Giuliani, says she may have broken the law by recording private conversations at the White House . Trump aides have sought to aggressively counter her claims, which coincide with the release of the ex-aide's new tell-all book.

Mookie monster! Betts homers in 9th to complete cycle
Chris Taylor and Brian Dozier homered in a three-run ninth inning that snapped a 5-5 tie, and Los Angeles beat Colorado in Denver. In Cleveland, Michael Brantley's ninth-inning single gave the Indians their second straight walk-off victory over Minnesota.

Boateng cools on United interest
Manchester United is not an option for Jerome Boateng despite eyeing a move away from Bayern Munich . The Germany worldwide was being targeted by United and Arsenal, with Bayern demanding £44.5m.

Trump fanatics re-install multiple stars on Hollywood’s Walk of Fame
Because the Walk of Fame, which holds 2,500 stars, is the property of the City of Los Angeles , the city has the final decision. The star, of course, has been a means for the populace to register their disgust with the sitting President/America .

Manchester United intend to introduce their first ever director of football
Pogba said "everybody was on the same page" in the France dressing room, from manager Didier Deschamps to the staff and players. The Frenchman was handed the armband by Jose Mourinho in the first competitive match of the season against Leicester City .

Turkey pledges action to calm markets
Although he downplayed the Dollar's strength, he once again summoned God to be on the Turkish side against the US. Last week, a Turkish delegation went to Washington and met American counterparts but there was no breakthrough.

The Oscars Add "Popular Film" Category And Social Media Goes Nuts
A few changes to future Oscars telecasts have been announced on Wednesday by The Academy of Motion Picture Arts and Sciences . The 54-member board of governors announced the creation of a category for "outstanding achievement in popular film".