Worldwide

Erdogan tells US: Turkey will find new friends

Erdogan tells US: Turkey will find new friends”

He told his 57million followers: "I have just authorised a doubling of Tariffs on Steel and Aluminium with respect to Turkey as their currency, the Turkish Lira, slides rapidly downward against our very strong Dollar!" Turkish aluminum will now be taxed at 50% and steel at 20%, essentially pricing Turkish metals out of the US markets.

On June 21, Turkey's retaliatory tariffs went into effect on 4 to 70 percent of more than $1 billion worth of USA goods.

Washington has "upset" Turkey with its "unilateralism and disrespect", Turkish President Recep Tayyip Erdogan said at a rally.

"If you have dollars, euros or gold under your pillow, go to banks to exchange them for Turkish lira".

The latest tariffs stem from the trade fight Trump launched earlier this year with several countries, including Turkey, according to the Washington Post.

Turkish officials held talks in Washington this week but there was no breakthrough.

Earlier this month, the USA slapped sanctions against Turkey's ministers of justice and interior in response to Brunson's detention.

The meetings came as Turkey seeks to stanch an economic meltdown amid fallout from USA sanctions imposed last week over the continued detention of the pastor, Andrew Brunson, who was jailed on espionage and terrorism suspicions more than two years ago and recently released to house arrest. Since then Trump and his vice president Mike Pence have repeatedly called for his release while Ankara said the decision was up to the courts.

Watch the lira trade in real time here.

"This is a national, domestic battle".

UBS chief economist for EMEA emerging markets Gyorgy Kovacs said a giant rate hike of 350-400 basis points would be "consistent with real rate levels that in the past helped to stabilise the currency" but warned a deal to normalise ties with the United States may also be needed.

Nationalist Movement Party (MHP) leader Devlet Bahçeli said: "Economic terror is being created on the pretext of a pastor". "During this period, Turkey has set records in its exports, production and employment", Erdogan said.

Now at a new record low, Turkey's currency has lost more than 40% this year.

One of the triggers of the turmoil has been a standoff with the USA over a detained American pastor that Turkey, a North Atlantic Treaty Organisation ally, has put on trial for espionage and terror-related charges linked to a failed coup attempt in the country two years ago.

Last week, the United States implemented punitive sanctions on two members of the Turkish cabinet and warned of further measures to come.

The U.S. consumer price inflation (CPI) report for July is expected to show inflation likely increased 0.2 percent, after rising 0.1 percent in June.

Turkish President Tayyip Erdogan has remained defiant despite the lira being in free fall.

Meanwhile, markets are deeply concerned over the direction of economic policy under Erdogan, with inflation at almost 16 percent but the central bank reluctant to raise rates in response. He claims higher rates lead to higher inflation - the opposite of what standard economic theory says. His comments on interest rates - and his recent appointment of his son-in-law as finance minister - have heightened perceptions that the central bank is not independent.

Erdogan has been putting pressure on the central bank not to raise interest rates in an attempt to help borrowers.

"President Erdogan's strengthened powers under the new presidential system have made it increasingly uncertain whether policymakers will be able to act to stabilise the economy", said William Jackson, chief emerging markets economist at Capital Economics in London.

People change money at a currency exchange office in Istanbul, Turkey, Aug. 10, 2018.



Like this

loading...
loading...

Latest


13 August 2018
Muschamp defends Durkin against 'gutless' report of toxic culture
He wasn't out to hurt anyone. "From what I remember, he never really went over the line or did anything insane like that". Durkin led Florida to a 28-20 win over East Carolina in the 2015 Birminham Bowl.

13 August 2018
Perseids 2018: Where And How To Watch The Dazzling Meteor Shower
Scientists from NASA also said that camping out in the country can triple the amount of visible meteors. Once darkness falls, sky-watchers can expect to see one of the shooting stars every few minutes.

13 August 2018
Erdogan slams interest rates
Trump's "jubilation in inflicting economic hardship on its North Atlantic Treaty Organisation ally Turkey is shameful", he wrote. Trump said earlier on Twitter that he authorized the doubling of tariffs, noting that "aluminum will now be 20% and steel 50%".

13 August 2018
Kavanaugh Hearing Date Set for September 4 in Senate
Bush's administration, Republicans and Democrats continue to feud over what could be more than 1 million pages of documents . Kavanaugh will face questions Wednesday, Sept. 5, followed by testimony from and legal experts and people who know the judge.

12 August 2018
Endangered orca that sparked worldwide rescue plan gets first treatment
After the examination, Haulena was leaning away from respiratory infection or pneumonia as an explanation for J50's condition. The teams were, however, racing out to sea to help another ailing young killer whale in the same critically endangered pod.

12 August 2018
Manchester City begin Premier League title defence with win over Arsenal
FW Pierre-Emerick Aubameyang , 6 - In Aubameyang, Arsenal have the kind of striker who can be a peripheral figure without service. An injury to Ainsley Maitland-Niles is a significant blow, especially with Sead Kolasinac already sidelined.

12 August 2018
Cristiano Ronaldo's Juventus debut abandoned after fans invade pitch
After the game, fans at the game, who had come in their numbers to catch a glimpse of their new number 7, flooded onto the pitch. A pitch invasion from the almost 5,000 fans in attendance forced the end of the game after only 72 minutes.

12 August 2018
Family, friends recall man who crashed stolen plane as hard-working, kind
The stolen plane was a twin-engine turboprop Q400 belonging to Horizon Air, its parent company Alaska Airlines said on Twitter. According to a statement from Alaska, the sole man onboard, the one operating the plane, was an employee for Horizon Air.

21 May 2018
Represent of the third generation of antibiotics – Suprax Cefixime
Suprax is a Cefixime-based medicine and acts bactericidal, i.e. it kills bacteria, and thus fights against infections. The principle of the Suprax Cefixime action is such that it prevents this process, weakening their functioning.

10 May 2018
How to choose an app development company: here's what you need to know
Before starting to work with a company, clearly define your requirements and expectations, set appropriate deadlines and budget. Believe me, you don’t want to spend hours fixing the bugs and replying to negative comments on Play Market.