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Erdogan Tells Turks to Buy Crumbling Lira as Trump Turns the Screws

Erdogan Tells Turks to Buy Crumbling Lira as Trump Turns the Screws

Our relations with Turkey are not good at this time!'

'I have just authorized a doubling of Tariffs on Steel and Aluminum with respect to Turkey as their currency, the Turkish Lira, slides rapidly downward against our very strong Dollar!' Trump said in an early morning post on Twitter.

Erdogan framed Turkey's currency crisis as a "national battle" against economic enemies, namely the United States, saying 'if they have their dollar, we have the people, we have Allah'. "You are exchanging your strategic partner in North Atlantic Treaty Organisation for a priest".

"The issue that global investors now need to take into consideration is that the recipe for a currency crisis in Turkey is now presenting a risk of a contagion knock-on effect across other markets", Ahmad said.

"Interest rates should be kept to a minimum because they are a tool of exploitation that makes the poor poorer and the rich richer", he said.

The central bank has over the last weeks defied calls from markets for rate hikes to combat these problems, raising fears of interference from Erdogan who has repeatedly called for low interest rates.

Erdogan has downplayed the currency crisis, urging Turks to convert any stashed-away gold or foreign currency into lira, thereby waging a "war of independence" against America.

Erdogan said high foreign exchange rates were being used as a weapon against Turkey.

"We know very well that the issue is not the dollar, the euro or gold". "Relations with countries who behave like this have reached a point beyond salvaging", said Erdogan, who warned of "economic war".

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Ankara had already taken measures to respond and would continue doing so, he added.

"Unless the United States starts respecting Turkey's sovereignty and proves that it understands the dangers our nation faces, our partnership could be in jeopardy", he wrote.

Turkey's President Recep Tayyip Erdogan on Saturday accused the U.S. of exchanging its "strategic North Atlantic Treaty Organisation ally with a pastor", remarks that questioned why Washington was seeking to free its citizens detained by Ankara, including Pastor Andrew Brunson who has become the eye of a diplomatic storm between the two nations.

Washington recently imposed sanctions on Ankara over detained Americans.

Qassemi's remarks followed those of Iranian Foreign Minister Javad Zarif, who had said "Trump's jubilation in inflicting economic hardship on its North Atlantic Treaty Organisation ally Turkey is shameful".

The penalties also bar any United States transactions with the two men.

The lira dropped by over 11 percent in value in one day on Friday morning to almost six lira per dollar.

Turkish officials held talks in Washington this week but there was no breakthrough.

A Financial Times report said the European Central Bank was anxious that Turkish citizens would start defaulting on their loans.