More US sanctions for Turkey if they don't obey

18 August, 2018, 18:27 | Author: Lora Ball
  • Turkish Lira sell-off wreaks havoc with global currency markets

"You haven't acted, so we will", is how Brownback described President Donald Trump's "decisive, aggressive action" against Turkey for holding a USA citizen illegally on unproven terrorism charges.

The lira has lost almost 40 per cent of its value against the dollar this year as investors fret about President Tayyip Erdogan's influence over monetary policy.

In response to the weakness, the Turkish banking watchdog has taken steps to stabilize the currency, limiting futures transactions for offshore investors and lowering limits on swap transactions.

The embattled lira fell three percent yesterday after a Turkish court rejected a United States pastor's appeal for release, drawing a stiff rebuke from Mr Trump, who warned the U.S. would not take the detention of Andrew Brunson "sitting down".

He also urged Brunson to serve as a "great patriot hostage" while he is jailed and criticized Turkey for "holding our wonderful Christian Pastor".

Last week, Trump tweeted that his administration was doubling aluminium and steel tariffs for Turkey, and in response Ankara sharply hiked tariffs on some United States products.

The fresh slide dented investor confidence and knocked emerging market currencies back into the
red. "The US wishes to tell the Turkish society that its leader has to be removed". The pastor was arrested in 2016 after the failed coup attempt and has been held in remand since.

"They should have given him back a long time ago, and Turkey has in my opinion acted very, very badly", Trump told reporters at the White House.

More news: Utah firefighter killed battling California blaze

The issue has led to a dramatic souring of U.S. -Turkey relations.

The US has threatened to impose more economic sanctions on Turkey if it does not free a detained American pastor.

Mr Trump's comments came as Turkey's finance minister Berat Albayrak attempted to reassure 6,000 worldwide investors and economists on a video link that the country would emerge stronger from the crisis.

'We are not going to take it sitting down.' The row follows US-imposed sanctions on two Turkish ministers and doubled tariffs on its steel and aluminum imports.

Turkey, meanwhile, has been busy seeking other alliances, including with China, Russia, Iran, and a wide range of other emerging countries, all of which Ankara sees as potential substitutes for its deteriorating relationship with the USA and North Atlantic Treaty Organisation.

Turkey is also seemingly on the brink of a major debt crisis, as a weakening lira makes it harder for Ankara to pay its worldwide dues. "The Europeans will maintain the existing objections to certain Erdogan policies and continue to voice their concerns, but that won't stop them from developing pragmatic cooperation with Turkey", he said.

However, it is not just Turkey that has something to lose in this crisis. He said he was also considering an appeal to Turkey's constitutional court.

For years Turkish firms have borrowed in dollars and lira to take advantage of lower interest rates.

Recommended:



Popular

Turkish lira trades below 6.0 against dollar after USA comments
When Kilic sought to tie conditions to Brunson's release, Bolton waved them aside and said there would be no negotiations. Turkey's exports to the United States past year amounted to $8.7 billion, making it Turkey's fifth-largest export market.

Asian shares gain on US-China trade talks, lira recovers
The state-run Anadolu Agency said the finance chief would address hundreds of foreign investors on Thursday. She wouldn't be drawn on whether the Trump administration would respond.

Why Arsenal shouldn't give up on Petr Cech yet
One problem area for Emery may be solved by the return of Nacho Monreal at left-back. I want consistency", said Emery on Thursday.

Samsung Launches Galaxy Note 9 with 128GB Base Model
However, Spotify and Samsung partnership announcement was one of the most unexpected parts for the launch event. But it also means that Galaxy Note 9 users will be waiting for quite a while for the update to Android 9 Pie .

Oil prices dip as demand outlook dims; Iran sanctions provide some support
West Texas Intermediate ( WTI ) crude futures were at $67.43 a barrel, down 20 cents, or 0.3 percent from their last settlement. Oil held steady even as Turkey's economic strife sparked an emerging-market sell-off, fueling fears of broader market turmoil.

Search for survivors after Italian motorway collapse kills 26
"We should ask ourselves whether respecting these (budget) limits is more important than the safety of Italian citizens. Restructuring work was carried out in 2016 on the 1.2 km-long bridge, first completed in 1967.

Erdogan Vows to Boycott U.S. Electronic Goods Amid Pastor Spat
Some joked bitterly on social media that the plunge of the lira would make Apple products unaffordable for Turks in any case. Erdogan has said Turkey needs to find "new friends" because of the row with the its North Atlantic Treaty Organisation ally.

Stokes' England teammate next in crosshairs in affray case
Stokes and Ali tussled and fell to the floor and when the sportsman got back to his feet Mr Hale was stood in front of him. England did not miss Stokes much as his replacement Chris Woakes starred with both bat and ball.

Barcelona director speaks out on 'great' Paul Pogba
A player that gets chosen and is happy, you always feel more comfortable than when he's not happy. If you're not happy, you can not give your best.

Trump Signs $717 Billion Defense Bill Including 2.6 Percent Troop Pay Raise
The 2019 bill, which President Trump signed on Monday, includes $716 billion in funding for the armed forces and related programs. Earlier Trump tweeted that he was "looking forward" to talking to America's "great heroes" and signing H.R. 515, the " John S.