Drop in Turkish lira is making us a lot more money

Turkey’s President Tayyip Erdogan accompanied by his wife Emine Erdogan

Turkey’s President Tayyip Erdogan accompanied by his wife Emine Erdogan

Multiple institutions announced Monday similar warnings against those responsible for the crisis.

Ties between the two North Atlantic Treaty Organisation allies have also nosedived over USA support for Syrian Kurdish forces, Ankara's plans to buy a Russian missile system and Turkey's demand that Washington extradite US-based Islamic cleric Fethullah Gulen, whom Erdogan blames for the failed July 2016 coup bid. He added that USA electronics would have sanctions placed on them. "We go through the list of options they have to stop this: it involves rate hikes, getting the International Monetary Fund involved and restoring market confidence in the lira".

Systemic monetary problems such as high external debt and a current account deficit boiled over when the United States, a North Atlantic Treaty Organisation ally, imposed sanctions on Ankara over the continued detention of Andrew Brunson, an American pastor accused of espionage on behalf of terrorist groups.

As Turkey's currency started dropping, President Donald Trump announced that the USA would be doubling its tariffs on imports of Turkish steel and aluminum.

Lavrov says that Washington's policies will undermine the dollar's position as the worldwide reserve currency of choice.

None of this looks remotely sufficient to deal with the scale of the crisis, particularly given the paucity of Turkey's foreign currency and gold reserves - which are often used by central banks to fight off currency speculators. He said many emerging market countries have improved their basic economic policies and regulations, and markets are differentiating between Turkey and these others.

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. It was not clear when the court would consider the appeal.

Albayrak also announced Tuesday that he would hold a conference call with investors from the United States, Europe and the Middle East on Thursday.

The Trump administration doubled tariffs on Turkish steel and aluminum imports last week and hit two of the country's ministers with financial sanctions late last month over Turkey's detainment of an American pastor.

Brunson, 50, is being tried on espionage and terror-related charges, which he and the USA government vehemently deny. Although he was released to home detention, he faces a prison sentence of up to 35 years if he is convicted at the end of his ongoing trial.

He sharply criticized the US for its trade policy, claiming that the ultimate goal was destabilizing Turkey.


Turkish President Recep Tayyip Erdogan says his country will boycott USA -made electronic goods amid a diplomatic spat that has helped trigger a Turkish currency crisis.

He said: "If they have the iPhone, there is Samsung elsewhere".

"There is a cost for those who are plotting the operation" against Turkey, he said in televised remarks from Ankara, without specifying when the boycott would start or how it would be enforced.

The lira posted gains on forex markets for the first time after days of losses, giving the currency much-needed respite.

Although the lira won a small respite on Tuesday, investors say measures taken by the Central Bank on Monday to ensure liquidity fail to address the root cause of lira weakness.

Despite Erdogan's rhetoric, diplomatic efforts are still under way.

The business groups also urged the drawing up of a roadmap to reduce inflation.

Brunson is an evangelical pastor from the United States who's being detained in Ankara for participating the 2016 coup against Turkey's current President, Recep Tayyip Erdogan.

Global markets skidded on Friday as investors anxious that financial distress in Turkey could affect the worldwide banking system and the broader economy.

"We as Turkish Airlines are taking our place alongside our state and people", senior vice president for media relations Yahya Ustun tweeted.

Investors are anxious that Turkish companies that borrowed heavily to profit from a construction boom may struggle to repay loans in dollars and euros, since the weakened lira means there is now more to pay back.

Recommended News

  • Koepka won't be satisfied with 3 major titles

    Koepka won't be satisfied with 3 major titles

    Three players will be picked following the Dell Technologies Championship, the second FedEx playoff event, on September 4. You want guys who are playing well", Furyk said as he discussed the attributes needed by contenders for a wildcard pick.
    Manafort seeks acquittal as tax, bank fraud trial moves to defense

    Manafort seeks acquittal as tax, bank fraud trial moves to defense

    But Manafort's wife, Kathleen, owned the other 50 percent, and the couple have filed joint tax returns for decades, U.S. If the defense rests, closing statements would be next, after which the 12-person jury will begin deliberations.
    Tiger Woods set for Ryder Cup return after stunning PGA Championship

    Tiger Woods set for Ryder Cup return after stunning PGA Championship

    But if his powers of recovery from that grim scenario were remarkable then so, too, were his escapology feats in St Louis. Not even boyhood heroes Tiger Woods or Adam Scott could intimidate the Floridian, Elliott said.
  • Scots unemployment rate down slightly to 4.2%

    Scots unemployment rate down slightly to 4.2%

    On productivity, the ONS also said output per hour worked was up by 1.5 percent - the biggest rise since late 2016. The unemployment rate fell to 4.0 percent in the April-June period, the Office for National Statistics said.
    Musk Confirms Saudi Sovereign Fund Wants To Pull Tesla Off Market

    Musk Confirms Saudi Sovereign Fund Wants To Pull Tesla Off Market

    In his proposal, existing shareholders could remain as they are in a private Tesla, or agree to the buyout amount per share. Musk's Monday statement acknowledged that Saudi Arabia's participation hinges on "financial and other due diligence".
    'Manic Monday': Turkey's collapse sinks emerging markets

    'Manic Monday': Turkey's collapse sinks emerging markets

    But there are fears that Mr Erdogan, who is famously averse to interest rate rises, may be pressuring the central bank not to act. Tourists count their Turkish liras after exchanging foreign currency at a exchange shop in Istanbul, Aug. 13, 2018.
  • Trump Fires Back at Former Staffer Omarosa Manigault

    Trump Fires Back at Former Staffer Omarosa Manigault

    On Monday, the former senior aide revealed a recording she'd made of the President phoning her on the day after she was sacked . Gidley and other White House staffers are now acting shocked as well. "I'm only loyal to the president, '" she writes.
    VIDEO of deadly Genoa bridge collapse aftermath shows destroyed cars, building damaged

    VIDEO of deadly Genoa bridge collapse aftermath shows destroyed cars, building damaged

    Italian news agency Adnkronos, citing local ambulance services, reported that there were "dozens of dead" in the collapse. The collapse is believed to have been caused by a structural weakness, the ANSA news agency said.
    Indian rupee drops to 19.05 vs dirham for the first time

    Indian rupee drops to 19.05 vs dirham for the first time

    Analysts attributed the weakness in Turkish lira as one of the key reasons for rupee to be under pressure. On Monday, the rupee had tumbled 110 paise to close at 69.93 - its biggest single-day fall in five years.
  • I don't react to trolls: Anushka on her picture with Indian team

    I don't react to trolls: Anushka on her picture with Indian team

    If you're wondering, the film is slated to release on September 28 and also stars Raghubir Yadav in a pivotal role. On the other hand, Anushka plays a much more grounded character which makes them a flawless duo on screen.
    Jack Whitehall to Play Disney's First Openly Gay Character

    Jack Whitehall to Play Disney's First Openly Gay Character

    Jack Whitehall's casting in a new Disney film has sparked an outcry, following reports he will play an openly gay character. Still others pointed out that this is not the first time a "gay" character has been played by a straight actor in Disney.
    Turkey pledges action to calm markets

    Turkey pledges action to calm markets

    Stocks have fallen modestly in the USA and Europe since last week, but analysts do not see a big risk of financial turmoil. Federal Reserve continues to hike interest rates, helping to strengthen the dollar at the expense of other currencies.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.