Economy

Turkey on the Economic Brink, Explained in a Dozen Charts

Turkey on the Economic Brink, Explained in a Dozen Charts

'If there is anyone who has dollars or gold under their pillows, they should go exchange it for liras at our banks.

He appeared to blame foreigners for trying to hurt Turkey, saying: "This will be my people's response against those waging an economic war against us". "You will not make money at the expense of Turkish people".

Erdogan urged a crowd in the city of Bayburt to exchange dollars and gold for Turkish lira to prop up the plunging currency.

The currency extended its losses to trade at 6.2 to the dollar, a loss of 11.5 percent on the day. Do not heed them,"Erdogan said".

"The dollar can not block our path".

"Turkey expects other member countries to abide by worldwide rules", the ministry said in a statement, adding that it would support steel and aluminum exporters in all global platforms, adding that the United States remained an important trade partner.

Speaking in the Black Sea privince of Rize late on Thursday, Mr Erdogan told supporters: "There are various campaigns being carried out".

The United States is the biggest destination for Turkish steel exports with 11 percent of the Turkish export volume. High level meetings in Washington between US and Turkish officials ended this week without an apparent resolution.

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Meanwhile, markets are deeply concerned over the direction of economic policy under Erdogan with inflation almost 16 percent but the central bank reluctant to raise rates in response.

"In that sense, the Turkey situation can be a contagion not only in Europe but across emerging markets", Anderson said. Earlier this month, the USA slapped sanctions against Turkey's ministers of justice and interior in response to Brunson's detention.

"The Central Bank's independence should always continue as a principle".

Tukey's Treasury and Finance Minister Berat Albayrak speaks at an event introducing the "new economic model" at the Dolmabahce Palace in Istanbul on Aug 10, 2018. His comments on interest rates - and his choice of a family member as finance minister - have heightened perceptions that the central bank is not independent.

"As Erdogan's entire economic agenda is built on high growth, and Erdogan furthermore has highly dismissed capital controls during other crisises (eg. following the coup attempt in 2016), this looks like a measure of last resort". Our relations with Turkey are not good at this time!

Shares in France's BNP Paribas, Italy's UniCredit and Spain's BBVA, the banks seen as most exposed to Turkey, fell as much as 4 percent.

The lira dropped as much as 20% against the dollar, its steepest daily drop since at least 2001.

Investors fear Turkey is teetering on the edge of financial crisis following a dramatic plunge in its currency that has gathered pace this week.