Published: Tue, August 14, 2018
Finance | By Cynthia Curry

In Response To Sanctions, Turkey To Boycott US Electronic Goods: Erdogan

In Response To Sanctions, Turkey To Boycott US Electronic Goods: Erdogan

Turkish President Recep Tayyip Erdogan called the reduction in the value of the Turkish national currency, a "conspiracy" against Turkey, but said the Turkish people would not surrender.

"In the absence of realistically effective measures, we are likely to continue seeing the Turkey crisis spill over into other markets, starting with the high beta EMs such as South Africa, Russia, Brazil and Mexico".

"On the one hand you are going to be a strategic partner and on the other hand you put a bullet into your strategic partner", Erdogan added.

"We are together in North Atlantic Treaty Organisation and then you seek to stab your strategic partner in the back".

The economic troubles in Turkey have gripped global financial markets, with investors scrambling to determine whether and how far pain there would spread. To pursue these ends, as its response to Turkey makes clear, U.S. imperialism is prepared to plunge the world capitalist economy into deep crisis.

Relations between North Atlantic Treaty Organisation allies Turkey and the United States are at a low point, hurt by a series of issues from diverging interests in Syria, Ankara's plan to buy Russian defence systems and the detention of an American pastor, Andrew Brunson. Turkey refused to release an American pastor who has been in detention in Turkey for almost two years now. "We will implement a boycott on USA electronic products". The US has refused to extradite Fethullah Gulen, who lives in Pennsylvania. We have Vestel in our own country.

He has threatened to seek new alliances - a veiled hint at closer ties with Russian Federation - and warned of drastic measures if businesses withdraw foreign currency from banks.

Brazil legend Ronaldo in intensive care at Ibiza hospital with pneumonia
Thank you all for your love and your messages!" Hospital sources have said he is still in intensive care but making good progress. During his glittering career Ronaldo won the FIFA World Player of the Year award three times, in 1996, 1997, and 2002.

What is happening to the lira?

Trump authorized an increase in tariffs on Turkish aluminum and steel products on August 10, while the US also imposed sanctions on Turkish justice and interior ministers for their alleged role in the arrest American pastor Andrew Brunson, who is under arrest for his alleged links with PKK and Gülenist Terror Group (FETÖ).

World share markets regained their footing on Tuesday as the threat from the collapse of the Turkish lira ebbed and reassuring German data offset signs of slowing growth in China. That helped Turkey's economy, which grew at 7 percent past year. By size, Turkey is America's 32nd-largest trading partner, and USA banks have little invested in Turkey, making up less than one percent of all foreign lending.

The bank also revised reserve requirement ratios for banks, in a move also aimed at staving off any liquidity issues. So far this month it has lost 2.4 percent. Even more, Trump's direct reference to the Turkish lira sent the currency tumbling. The worldwide financial markets are demanding that the Turkish central bank raise interest rates-a step that Erdogan has resisted-and that sweeping austerity measures be imposed.

Even before the current crisis, the worldwide monetary environment had started turning against emerging currencies as central banks in developed economies, especially the Federal Reserve, began increasing rates as their economies improve.

It's not clear how Erdogan would enforce the boycott, the AP noted.

Like this: