Published: Wed, August 15, 2018
Finance | By Cynthia Curry

Dollar hits another 13-month peak over Turkey concerns

Dollar hits another 13-month peak over Turkey concerns

When Erdogan didn't release the prisoner, merely shifting him to house arrest from jail, Trump struck with sanctions that tanked the lira.

The top USA diplomat in Turkey, Charge d'Affaires Jeffrey Hovenier, visited Brunson and his wife, Norine, Tuesday, calling on Turkey to resolve his case "without delay and in a fair and transparent manner".

Turkey's ambassador to Washington Serdar Kilic on Monday held talks with US National Security Advisor John Bolton in a meeting that Cavusoglu said was arranged by the White House.

Tensions between the two North Atlantic Treaty Organisation allies have intensified amid a dispute over the detention of Andrew Brunson, whom Turkey accuses of aiding a failed coup.

Earlier this month, the U.S. Treasury Department sanctioned Turkey's ministers of Justice and Interior in response to the continued detention of the pastor, who has lived in the country for 20 years and heads an evangelical congregation of about two dozen people in the port city of Izmir.

President Recep Tayyip Erdogan suggested that Turkey will stick to Samsung and Vestel if U.S. products are banned.

Erdogan said on Tuesday Turkey would boycott United States electronic products as the row escalated.

"If they have the iPhone, there is Samsung elsewhere".

While Erdogan didn't address their concerns in his speech, he said Turks have already begun converting foreign exchange into Turkish lira because it would be tantamount to "surrendering" if they did otherwise.

Thibaut Courtois wants Eden Hazard reunion at Real Madrid
As expected, the world has been reacting to the news of Thibaut Courtois' move from Chelsea to Real Madrid . I just want to be myself, the same as I've always been, and try to give my best for the club.

Asked how the Trump administration would react to any such Turkish boycott, Sanders replied during Tuesday afternoon's briefing, "I certainly don't have a policy announcement on that at this point".

Although relations between Russian President Vladimir Putin and Turkey's Erdogan have stabilised since they spiralled into crisis when Turkey shot down a Russian fighter jet in 2015, the Kremlin can offer little to ease Turkey's current economic woes.

For one more time, Erdogan called on Turks to convert USA dollars into lira in order to "maintain the dignity" of the currency.

Erdogan, rejecting economic fundamentals as the cause of lira weakness, said Turkey was the target of an economic war.

Despite a call from Turkish business groups for President Recep Tayyip Erdogan to mend ties with Washington, the leader was defiant on Tuesday, calling for a boycott of United States electronic equipment.

The lira's troubles so far this year are comparable only to Argentina's peso and both have made for sharp negative stock returns in greenbacks.

Turkey is especially exposed, where non-bank borrowers - a broad group including government, households and most corporations - held US$195-billion in debt denominated in USA dollars at the end of previous year, "or a stunning 23 per cent of [gross domestic product]", according to National Bank Financial. Bolton warned him that the United States would not give any ground, a senior USA official said.

Reuters quoted an official as saying more economic pressures may be in store for Turkey unless steps are taken "in the next few days or a week". "For Bulgaria, Greece and Russia, Turkey accounts for over 5 percent of total goods exports, a significant share", Ken Wattret, chief European economist for IHS Markit, said in a statement. The country's Finance Minister will seek to reassure around 1,000 worldwide investors in a teleconference scheduled for Thursday. "Whatever we pay for from overseas, we will do here", he said, referring to a cell phone made in Turkey.

Like this: