World News

Erdogan says Turkey has become 'target of economic war'

Erdogan says Turkey has become 'target of economic war'

In a tweet, Trump announced the doubling of the tariffs in new punitive actions against Turkey, saying: "Our relations with Turkey are not good at this time!".

Although Turkey and the United States have been North Atlantic Treaty Organisation allies for more than 60 years, the U.S. "has repeatedly and consistently failed to understand and respect the Turkish people's concerns", Erdogan said in his opinion piece. He did not specify any countries. The lira slid to a fresh record low against the USA dollar.

"The country is neither crumbling, nor being destroyed or bankrupt or in a crisis", he said, adding that the way out of the "currency plot" was to boost production and "minimize interest rates".

And what about the Fed, which is expected to keep raising interest rates as early as next month?

But Erdogan said Turks should not be alarmed by exchange rate movements.

It all started with Turkey's own mistakes - or, more accurately, with Turkish President Recep Tayyip Erdogan's. The sides held talks in Washington this week but failed to resolve the spat.

Brunson, an evangelical Presbyterian from North Carolina, was jailed for allegedly supporting the group that Turkey blames for the failed coup and was moved from prison to house arrest in July.

Turkish President Tayyip Erdogan told a rally Friday that his country would not yield to what he called bullying and blackmail.

I hope we can soon get Pastor Brunson and other Americans released in a win-win fashion for both the U.S. and Turkey."Trump's move to double tariffs on Turkey was even praised by one of the president's most frequent Democratic critics". Put these all together, and you get a pretty classic emerging markets crisis: Money has been leaving Turkey because it can now get good enough returns elsewhere, which is then pushing down the value of their currency so much that their dollar debts are getting harder to pay back.

A almost hour-long presentation on Turkey's new economic policy by Treasury and Finance Minister Berat Albayrak - Erdogan's son-in-law - also did little to limit the currency's free-fall.

"I am asking you". As of Friday morning, the lira was worth roughly 15 cents.

More news: Columnist explains how Omarosa has managed to ‘maximize her leverage’ on Trump

The tensions with Washington have, for investors, underscored Turkey's authoritarian trajectory under Erdogan. He seems to see Turkey's collapsing currency not as an existential threat to their economy they are trying to forestall, but rather as something they actively want to try to make their exports more competitive.

"If they have their dollar, we have the people, we have Allah, " he said.

"This will be my people's response to those who have waged an economic war against us", he said.

"There are historical and geopolitical reasons for limits with relations with Moscow, limits I think we've reached", said worldwide relations expert Soli Ozel of Istanbul's Kadir Has University.

He also repeated his call to Turks to sell their dollar and euro savings to shore up the lira.

"If there are dollars under your pillow, take these out".

Turkish Presidential Spokesman Ibrahim Kalin earlier wrote in the Daily Sabah newspaper that the U.S. runs the risk of losing Turkey as its ally.

In the New York Times, Erdogan warned Washington not to risk relations with Ankara, saying his country would otherwise look for "new friends and allies".

Washington "must give up the misguided notion that our relationship can be asymmetrical", he said in the opinion piece.

The US responded by imposing sanctions on Turkey and threatening more.