Turkey Says Has Action Plan to Ease Market Concerns

Screen Shot 2018 08 10

Screen Shot 2018 08 10

"Our relations with Turkey are not good at this time!" he added.

Erdogan, speaking to political supporters in the Black Sea resort of Trabzon, said, "The aim of the operation is to make Turkey surrender in all areas, from finance to politics".

On Friday the value of the lira against the dollar fell to a record low, having fallen against the dollar by more than 40 per cent this year.

On Friday the currency dropped as much as 18% at one point, the biggest one-day fall since a 2001 financial crisis in Turkey.

Erdogan said high foreign exchange rates were the means used in plots against Turkey.

According to the Wall Street Journal, the fall in the TRY in the face of increased U.S. tariffs on aluminum and steel raises uncertainty for investors in emerging markets.

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

Albayrak, who is Erdogan's son-in-law, didn't specify what the plan would involve. U.S. President Donald Trump introduced a round of sanctions on August 1, preventing the Turkish justice an interior ministries from doing business with U.S. businesses. Erdogan said. "There is no economic reason for this".

"Turkey expects other member countries to abide by worldwide rules", the country's trade ministry said in a statement.

Markets have been deeply concerned about the direction of domestic economic policy under Erdogan with inflation hovering around 16% as the central bank refuses to raise interest rates in response.

The lira sell-off deepened concern over whether over-indebted Turkish companies will be able to pay back loans taken out in euros and dollars after years of overseas borrowing to fund a construction boom under Erdogan. "You should know that to keep this nation standing is. also the manufacturers' duty", he said.

The two North Atlantic Treaty Organization (NATO) allies have been at odds over a wide range of issues: diverging interests in Syria, Ankara's ambition to buy Russian defence systems and more recently the case of Andrew Brunson, an evangelical pastor on trial in Turkey.

U.S. President Donald Trump on Friday ramped up his attack on Turkey by doubling U.S. tariffs on Turkish aluminum and steel imports to 20 percent and 50 percent, respectively. Erdogan asked Washington. "What happened to you now?"

"We are never accepting this order which declared economic war to the entire world and which held countries to ransom through sanction threats", he added, referring to the United States administration. Even if Washington and Ankara can resolve their immediate problems - such as the recent arrest of US citizens in Turkey - the numerous, and multiplying, issues on which Turkey and the United States now disagree could be their relationship's undoing.

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