Published: Sat, August 11, 2018
Finance | By Loren Pratt

Let’s double down on Turkey sanctions

Let’s double down on Turkey sanctions

President Donald Trump announced that the USA has doubled aluminium and steel import tariffs on Turkey, fixing them at 20 percent and 50 percent respectively.

Compounding the lira's agony, President Donald Trump said he had doubled steel and aluminium tariffs on Turkey, noting that relations between the North Atlantic Treaty Organisation allies were "not very good".

"Aluminum will now be 20 percent and Steel 50 percent". He added, "Our relations with Turkey are not good at this time!".

Washington has demanded the pastor's release and last month imposed financial sanctions on two Turkish ministers.

Trump noted on Twitter that the lira "slides rapidly downward against our very strong Dollar!" A delegation of Turkish officials held talks with their counterparts in Washington this week but there is no sign of a breakthrough.

Turkey's currency sank to record lows on Friday amid panic about the country's economic health and souring relations with the United States.

The currency has fallen 66 per cent since the start of the year, pushing up the cost of goods for Turkish people and shaking global investors' confidence in the country.

"Change the euros, the dollars and the gold that you are keeping beneath your pillows into lira at our banks".

As the crisis swelled he told his supporters not to worry.

Turkey's economic woes worsened after US President Donald Trump escalated a feud with Turkey by doubling tariffs on metals imports.


"The dollar can not block our path".

Turkey is front and center of the chaos on Friday, with its currency plunging to a record low against the U.S. dollar.

The lira has now lost over a third of its value against both the dollar and the euro this year, with the currency battered by both concerns over domestic economic policy and the political situation.

Investors have become increasingly concerned with the faltering Turkish economy, its central bank's willingness to respond to the downturn and the impact it could have on global financial markets, according to multiple reports.

U.S. sanctions and president Erdogan's tightening control over monetary policy are driving the fall, which sent the lira to an all-time low of above 6 to the dollar this morning.

"However, I say it once again from here".

Despite Trump's insistence, Turkey has not budged in freeing American pastor Andrew Brunson, who has been detained by Turkey for nearly two years on charges that he was working with a terrorist organization and was a spy.

"Don't forget, if they have their dollars, we have our people, our God", he said. Hard currency debt issued by Turkish banks suffered similar falls.

New Finance Minister Berat Albayrak - Erdogan's son-in-law - rolled out the government's new economic plan on Friday, promising central bank independence and tighter budget discipline, but giving few details to reassure investors. At one point, it was down as much as 19 percent on the day, before rallying a bit to bring it to "only" a 13.7 percent loss.

Erdogan, who was re-elected as president on 24 June and is a self-described "enemy of interest rates", wants banks to lend cheap credit to fuel growth, but investors fear the economy is overheating and could be due for a hard landing.

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