Economy

Turkey will respond if USA imposes more sanctions - trade minister

Turkey will respond if USA imposes more sanctions - trade minister

Turkey's currency remains steady against the dollar despite an apparent threat of possible new sanctions by U.S. President Donald Trump.

Turkey's lira, a key proxy this week of stress in emerging markets, was down 3.7% Friday, but up around 6% for the week.

Almost 10 million people use USA iPhones in Turkey, press reports said, adding that the amount paid for the products hit 7 billion dollars in 10 years.

Turkey and the United States exchanged new threats of sanctions Friday, keeping alive a diplomatic and financial crisis that is threatening the economic stability of the North Atlantic Treaty Organisation country as a Turkish court rejected the appeal of an American pastor caught in the middle of the row.

Trump then called Brunson a "very innocent man" and said his arrest was "not fair, not right".

Trump, before leaving the White House on Friday, denounced Turkey as a "problem for a long time" and said it made up a "phony" spying charge against the Rev. Andrew Brunson.

Turkey and Qatar have become close economic and political partners.

Last week the United States doubled tariffs on aluminium and steel imports from Turkey, during a dispute over Turkey's detention of an American pastor on security charges that the USA views as baseless.

Last week, Trump announced on Twitter that he had green-lit a doubling of steel and aluminum tariffs on Turkey, and warned that United States relations with Turkey "are not good at this time!"

He also urged Brunson to serve as a "great patriot hostage" while he is jailed and criticized Turkey for "holding our wonderful Christian Pastor".

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His words came shortly after the high court in Turkey rejected the pastor's appeal for release.

Mr Albayrak, President Recep Tayyip Erdogan's son-in-law, said the country's banks were healthy and strong and the nation would not be turning to the International Monetary Fund for a bailout.

Investors are concerned that Turkey has amassed high levels of foreign debt to fuel growth in recent years.

Last month, at Brunson's third court hearing in almost two years, USA officials thought they had brokered a deal to free him by pressuring Israel to release a Turkish citizen imprisoned there.

Washington warned on Thursday that it would impose more sanctions unless Brunson was released.

On Wednesday, the lira traded at 6.4125 to the USA dollar, weakening from a close of 6.3577 a day earlier.

"Korea we thought was all noise [.] so we bought back on that" said David Vickers, senior portfolio Manager at Russell Investments.

The currency gained some support from the announcement late yesterday of a Qatari pledge to invest $15 billion in Turkey.

Erdogan has remained defiant, urging Turks to sell their gold and dollars for lira and describing the crisis as an "economic war".