What's behind the current US-Turkey spat?

Erdogan slams US for preferring terrorists as partner

The falling Lira would hit Turkish companies that have to repay foreign currency debt estimated at more than 200 billion USA dollars.

The dispute with the U.S. has centered on the continued detention of an American pastor who is on trial for espionage and terror-related charges. The U.S. has responded by slapping financial sanctions on two ministers and later doubled steel and aluminum tariffs on Turkey, driving the concerns over Turkey's economy which are rattling worldwide financial markets.

Unfazed by Turkey's escalating economic turmoil, Erdoğan suggested he would snub US-made iPhones in favour of other mobile brands produced domestically or in other countries.

In its first statement since what was dubbed "Black Friday" in Turkey, the nation's central bank said on Monday it was ready to take "all necessary measures" to ensure financial stability, promising to provide banks with "all the liquidity" they need.

The bank also revised reserve requirement ratios for banks, in a move also aimed at staving off any liquidity issues.

Asian shares skidded on Monday (August 13) and the Euro hit one-year lows, after the Turkish Lira plunged even deeper over the weekend.

After a year-long stretch where much of the global economy was speeding up together and stocks were rising, the recent losses for Turkey and Argentina have caused emerging market indexes to fall out of favour.

"From Monday morning onward our institutions will take the necessary steps and will share the announcements with the market", Albayrak said.

More news: Everton enter the running to sign Bakayoko

Erdogan, who gained sweeping new powers following his re-election in June, said rumours had been spread that authorities might impose capital controls in response to the slump in the currency, which tumbled as much as 18 percent on Friday alone. "This a plot to force Turkey to surrender in every field from finance to politics, to make Turkey and its people to kneel down".

In his words, Turkey is once again facing "political and bad game". President Donald Trump's top national security aide warned Turkey's ambassador on Monday that the U.S. has nothing further to negotiate until a detained American pastor is freed, according to people familiar, signalling a standoff between the countries will continue.

"We are going to apply a boycott on America's electronic products", Erdogan said Tuesday during a televised speech, adding that there were alternatives, produced by South Korean or Turkish companies.

He had also said that dollars, euros and gold were now 'the bullets, cannonballs and missiles of the economic war being waged against our country'.

He also emphasized that there was a plan in place for small to medium businesses, which he called the "real" economy. In intra-day trade, it hit a fresh low of 69.62 against the greenback, tracking weakness in other emerging market currencies on concerns of a spill over from the Turkish crisis, according to Moneycontrol.

Erdogan also hit back at United States authorities for convicting Mehmet Hakan Atilla, 47, deputy director general of Turkish lender Halkbank on charges of helping Iran evade United States sanctions on billions of dollars of oil proceeds.

It also reached one-year lows against the yen and Swiss franc, safe harbors in times of stress. The dollar slipped from its highest in 14 months and Treasuries edged lower.

Similarly, the Vietnamese dong, which has been deemed as exposed to an intensification of hostilities between the U.S. and China over trade, also fell to a new all-time low against the dollar on Monday, with traders happy to seize on any excuse to sell.

Related News:



Most liked

Omarosa unveils new audio of Trump's call to her after firing
But speaking on the NBC show Meet The Press yesterday, Ms Newman said that she had heard a tape of Mr Trump using the "n-word". Sure, it's going to look retaliatory, but at this point it couldn't look worse than it is at the moment for the White House .

Pro Golfers Impressed by St. Louis Crowds at PGA Championship
The Florida native closed out with a final round of 66 to finish at -16 and claim his third Major title in just two years. However, he regained his mojo with three consecutive birdies to close the front nine to take the solo lead to the back.

Jose Mourinho Second with Manchester United among my biggest achievements
Pogba explained his side of the incident after the game and said he would not always be taking penalties for United this season. Jose Mourinho has cut a miserable figure all summer after only signing Fred , Diogo Dalot and Lee Grant .

Alaska Airlines plane crashes after unauthorised take-off from Seattle airport
A plane has crashed near Sea-Tac airport in Seattle after being stolen by an airline worker and perused by F-15 fighter jets. The Seattle FBI are now understood to be on the scene and have taken over the investigation.

Indonesia quake toll touches 131, hundreds injured, 1.5 Lac homeless
Rescue teams on Tuesday also continued searching under debris from collapsing buildings for more survivors, reports Efe news. It said clean drinking water was scarce because of a recent spell of extremely dry weather in Lombok.

West Nile virus found in mosquito
Kwit said healthy people might have come in contact with the West Nile Virus and might not even know it. Dallas County in Texas is the latest community in the US to report West Nile virus cases during 2018.

Star witness ends testimony in fraud trial of ex-Trump campaign chief
Gates said he falsely labeled hundreds of thousands of dollars in income as loans to reduce Manafort's tax liability. Gates pleaded guilty to reduced charges in February and agreed to cooperate with the government.

Million Limited Edition PS4 Pro announced
The front of each system will have a commemorative copper plate with its unique serial number etched on it. Even the packaging of the device is translucent and matches the design of the limited edition console .

Meghan Markle’s Royal Life Will Change Once Prince William Becomes King
So says a friend of the Duchess of Sussex , who claims the former " Suits " star won't fall for her dad's 'crocodile tears'. The Duchess of Sussex arrived to the ceremony in a navy Club Monaco dress with a built-in multicolored pleated skirt.

USA tariffs make no dent on China exports surge
China deprives US companies of the ability to set market-based terms in licensing and other technology-related negotiations. Economic threats will continue escalating before any settlement is possible, they said.

Chinese exports accelerate even as Trump escalates trade war
At the same time, Beijing reported a $28.1bn trade surplus with the USA in July, just below the record $28.9bn seen in June. In April, the administration had announced plans to slap tariffs on 1,333 Chinese product lines worth $50 billion a year.

5 killed in plane crash in California parking lot
The death toll originally was believed to be three, but was upped to five as firefighters examined the crash. As of 5 p.m., firefighters were still trying to free some of the bodies from the wreckage, Bommarito said.

Manchester United Reject Pogba Bid - Raiola Still Working On Barca Deal
It is believed Barcelona is working together with Pogba's agent Mino Raiola to secure a deal for the Manchester United midfielder. The Stamford Bridge outfit are ready to sign the 23-year-old after activating his release clause with a £71.6m offer.

Polls close in OH as elections in 5 states wrap up
Whitmer had the backing of labor groups and EMILY's List, and continues a streak of wins by Democratic women in primaries. Although the race was still too close to call, Mr Trump claimed victory and took credit for the Republican's success.

Elon Musk considering taking Tesla private
Tesla said in a regulatory filing in 2013 that investors interested in keeping up with Tesla should follow Musk's account. Tesla has burned through cash while struggling to produce the Model 3 , its lowest-priced electric vehicle .