Erdogan says crash of lira political plot against Turkey

Recep Tayyip Erdogan

President of Turkey Recep Tayyip Erdogan

Erdogan noted that his country would turn to other partners if this "economic war" goes on.

"The last time I can remember a currency exploding into a similar acceleration of weakness to what we have seen in the past 24 hours is the Russian ruble crisis that transpired late in 2014", Jameel Ahmad, the head of currency strategy at FXTM, said.

The statement followed Trump's tweet on Friday that he has authorized doubling the tariffs on steel and aluminum products from Turkey to 50 percent and 20 percent respectively.

Turkey wanted issues to be solved through diplomacy, dialogue and good intentions, Aksoy said.

Turkish president Erdogan warned Washington for allegedly not respecting of the sovereignty of Turkey which undermines Turkish effort to renew broken ties.

Referring to the recent US tariffs on iron and steel, he said that Turkey is a member of the World Trade Organization (WTO) and there was no such thing in WTO rules.

In a tweet, he said he was imposing duties of 20 per cent on Turkish aluminium and 50 per cent on steel.

The White House also cited currency movements in China last week when Trump called for a possible increase in tariff rates on Chinese imports.

The Turkish lira dropped as much as 18 per cent at one point after Mr Trump's announcement - the biggest one-day fall since a 2001 financial crisis in the country.

The lira sell-off deepened concern over whether over-indebted Turkish companies will be able to pay back loans taken out in euros and dollars after years of overseas borrowing to fund a construction boom under Erdogan.

The aim of the recent US pressure is "to seize Turkey in every field from finance to politics", the president noted.

The Turkish lira TRYTOM=D3 has always been falling on worries about Erdogan's influence over monetary policy and worsening relations with the United States.

President Recep Tayyip Erdogan on Sunday criticized the USA, saying Turkey will say "bye bye" to those, who prefer terrorists to their strategic partner.

Erdogan said high foreign exchange rates were being used as a weapon against Turkey.

Turkey wants the USA to extradite cleric Fethullah Gulen, a Pennsylvania-based cleric who Turkish authorities say masterminded the coup attempt in which 250 people were killed. Gulen denies the allegation. He denies the charges.

The United States gave Turkey a deadline until last Wednesday, Turkish President Tayyip Erdogan said on Sunday, to release an American pastor being tried by a Turkish court.

His cause resonates with Mr Trump's Christian conservative supporters.

It was Iran's most explicit rejection of talks to date, after much speculation that economic pressure would force its leaders back to the table with Washington or at least to engage in backroom discussions in NY. Brunson is facing 20 years in prison, where he would remain until the U.S. surrenders Gulen. 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.

Latest News