Shares rebound as Turkish lira pulls out of dive

Share

Turkish President Recep Tayyip Erdogan said Tuesday that his country will ban U.S. electronics after a diplomatic feud pushed it into a currency crisis.

"We will boycott USA electronic goods", Erdogan said in a televised speech.

The Middle East's largest economy has been targeted by the USA just like other nations around the world, including Canada, Erdogan said.

"If (the United States) have the iPhone, there's Samsung on the other side", he said, referring to U.S. giant Apple's iconic phone and the top South Korean brand. The first is Erdogan's strong belief that the higher interest rates that the International Monetary Fund is nearly certain to demand as a condition for an International Monetary Fund loan would be a cause of inflation rather than a cure of Turkey's economic imbalances.

"This is what we are striving for in our bilateral trade and economic relations, and what has been repeatedly mentioned at the bilateral Russian-Turkish talks", he added. Doubling down on his standoff with President Donald Trump, Erdogan also called on Turkish companies to produce more of their own goods.

The Turkish lira TRYTOM=D3 has lost more than 40 percent of its value against the dollar this year, hit by worries over President Tayyip Erdogan's calls for lower interest rates and fraying ties between the United States and Turkey, a North Atlantic Treaty Organisation ally.

White House National Security Adviser John Bolton met with Turkey's ambassador to the US, Serdar Kilic, in Washington earlier this week to discuss the potential release of Brunson.

That was a rare Trump understatement, as the two countries face sharp differences on the case of Brunson and other detained Americans, Erdogan's consolidation of power, USA support for Kurds in Syria, growing Turkish relations with Russia, Turkey's evasion of US sanctions and more.

While still nominally allies, the USA and Turkey's relationship is continuing to fall apart amid new economic penalties in the continued fight over an American pastor detained in Turkey.

More news: Halep, Weary and Aching, Gains Rogers Cup Final in Montreal
More news: Space Force: Trump 2020 asks supporters to vote on logo
More news: We Can Push Manchester City - Former Liverpool Striker Convinced

A Turkish airlines airplane at a docking station at the TAV airport in Skopje, Macedonia May 16, 2018.

His comments have so far failed to quell a crisis that economists say is largely self-inflicted, owing to an overheated economy and the debt exposure of Turkey's companies and banks. "Meanwhile, the Kurds remain a reality near and within Turkey's borders; a deepening economic crisis makes it increasingly vulnerable; and its erratic regional policy makes it hard to pursue any dialogue that requires trust and steadfastness".

Oil prices jumped after Saudi Arabia said it cut production, adding to concerns about global supply as USA sanctions against Iran bite its exports.

"We protect our lira".

The Turkish central bank has pledged to take "all necessary measures" to stabilize the country's economy to make sure the banks have all the money they need.

Trump, who has called Brunson's detention a "total disgrace", last Friday doubled tariffs on Turkish steel and aluminum exports in order to increase pressure on Turkish President Recep Tayyip Erdogan. The lira is, however, down about 40 per cent for the year against the United States dollar and had been down 25 per cent in a week before a slight recovery on Tuesday.

The day after the summit, Israel let the Turkish woman walk free, but Turkey merely moved Brunson from jail to house arrest, where he remains today.

Brunson's lawyer, Ismail Cem Halavurt, said the court had up to seven days to decide.

Brunson has already denied the charges, calling them "shameful and disgusting".

Share