Erdogan says Turkey to 'boycott' U.S. electronic goods

Ivan Schwartz
August 14, 2018

"You are exchanging your strategic partner in North Atlantic Treaty Organisation for a priest". "Can such a thing be accepted?"

"There is a price we're paying for the period we're in", he said in a combative speech in Ankara.

The lira tumbled to a record low of 6.97 to the dollar in early Istanbul trading on August 13, meaning it has lost 46 percent of its value this year.

Turkey's central bank took action Monday to free up cash for banks as the country grapples with a currency crisis sparked by concerns over President Recep Tayyip Erdogan's economic policies and a trade and diplomatic dispute with the United States. But world stock traders were dismayed the bank did not raise interest rates, which is what many economists believe is necessary to ease the crisis.

The wave of selling was triggered on Friday when U.S. President Donald Trump announced tougher sanctions on Turkish steel and aluminium exports, causing a spike in emerging foreign exchange volatility gauges.

Andrew Craig Brunson, an evangelical pastor from Black Mountain, North Carolina, arrives at his house in Izmir, Turkey, July 25, 2018. Trump has called the preacher's detention a "total disgrace".

In the speech to supporters in the Black Sea city of Trabzon, President Recep Tayyip Erdogan said that his country would not acquiesce to U.S. pressure, and that the Trump administration's actions were threatening the two countries' longstanding alliance.

"Turkey does not trigger such a devastating series of crises in other emerging markets that the combined impact could dent growth in the developed world in a meaningful way", said Holger Schmieding, an economist with Berenberg Bank. Yet he remained optimistic, saying "it is not at all like we sank and we are finished.The dynamics of the Turkish economy are solid, strong and sound and will continue to be so".

NFL finds 'defective' football in Steelers-Eagles game
The ball was found during the third quarter when Steelers third-round rookie quarterback Mason Rudolph at the helm. Unlike with the Patriots , the National Football League is ready to move on from this quickly.

Manchester City's Pep Guardiola not fazed by title-favourites tag
And with a series of key summer acquisitions , the Reds are seen as the most likely side to dethrone Manchester City . If you have a passion for the game like he does, connect with him across all platforms and share views.

Barcelona chief won't rule out move for Manchester United star Paul Pogba
Shearer, meanwhile, also criticised United's experienced manager for his overwhelmingly negative outlook throughout this summer. There have never been any clashes on the training ground.

Investors have grown increasingly concerned about President Tayyip Erdogan's growing control over the economy and a deepening diplomatic rift with the U.S., with the concerns snowballing into a market panic last week.

In his words, Turkey is once again facing "political and bad game".

President Trump last week imposed sanctions on Turkey over its refusal to release an imprisoned USA preacher.

"What is the reason for all this storm in a tea cup?" he said."There is no economic reason for this. This is called carrying out an operation against Turkey", he told reporters on Sunday, Aug. 12.

For a third consecutive day, Turkey's leader has called on his compatriots to exchange the dollars and the euro they have to support the Turkish currency. "You should know that to keep this nation the manufacturers' duty". Still, Erdogan indicated he was in no mood to offer concessions to the USA, or to financial markets. "That means they sell US Treasuries, boosting their yields, which helps to lift the dollar against the yen", said Makoto Noji, chief currency strategist at SMBC Nikko Securities. "Some close the doors and some others open new ones", he said. The flip side of that is that with the U.S. -Turkey relationship on the rocks, Ankara will "almost certainly not comply with the U.S. demand that it buy less oil from Iran now".

"We can only say "goodbye" to anyone who sacrifices its strategic partnership and a half-century alliance with a country of 81 million for the sake of relations with terror groups", he said."You dare to sacrifice 81-million Turks for a priest who is linked to terror groups?"

He faces up to 35 years in prison if convicted.

Other reports by GizPress

Discuss This Article