Turkish President Recep Tayyip Erdogan has denounced the Lira crisis as a "plot against Turkey", warning that his country will forge new alliances and markets in response to a bitter rift with long-time ally the United States, which has caused the Turkish currency to hit record lows. "Can such a thing be accepted?" Accession talks with the European Union have been suspended in response to alleged human rights and rule of law abuses; Washington has said Ankara's decision to buy Russian S-400 missiles was incompatible with Nato's defence systems; and Erdoğan has supported the Islamisation of Turkey.
"For the time being Turkey's financial crisis looks localised but the country's central bank has perhaps only days to stop the decline of the currency before the lira's freefall results in loan defaults, starts seriously affecting the country's financial system and potentially starts spilling over onto European banks", she said.
The currency pulled back from a record low to the dollar on Monday after the central bank pledged to provide liquidity, but it remained under selling pressure and its meltdown continued to rattle global markets.
On August 1 the United States announces sanctions against the Turkish interior and justice ministers, who they accuse of having played a major role in the arrest and detention of the pastor. Trump has described his detention as a "total disgrace" and urged Erdogan to free him immediately.
"You impose sanctions on our Halkbank. and then you expect different treatment from Turkey?" said Erdogan, in a second speech in the same city.
"It is not at all like we sank and we are finished".
"Turkey's financial crisis has taken center stage, displacing trade wars as the immediate concern", said analyst Eugene Leow of DBS Group said in a report.
But Beijing would likely factor in the longer-term benefit of building an alliance with a country that is also in conflict with the USA, potentially giving Beijing more global political leverage in future. "With God's permission we will overcome this", Erdogan told his party members.
"What is the reason for all this storm in a tea cup?" he said."There is no economic reason for this".
"We're working to set up a call between the president and the president of Turkey to reaffirm our strong bond", she says.
Albayrak also said a plan has been prepared for banks and the real economy sector, including small to mid-sized businesses, which are most affected by the foreign exchange fluctuations.
The Turkish currency reached a new record low of 7.24 against the United States dollar in Asia Pacific trade when markets opened on Monday morning.
"I am specifically addressing our manufacturers: Do not rush to the banks to buy dollars".
"We welcome long overdue news.but it is not enough", US Secretary of State Mike Pompeo says on Twitter. "You should know that to keep this nation standing is. also the manufacturers' duty", he said.
On Monday, in an apparent reference to the United States, Erdogan told a gathering of foreign ambassadors that "the bullies of the global system can not roughly, shamelessly encroach on our gains that were paid for by blood", according to the Hurriyet Daily News.
He had also said that dollars, euros and gold were now 'the bullets, cannonballs and missiles of the economic war being waged against our country'.
"Some close the doors and some others open new ones", added Erdogan, who has built closer ties over the last few years with countries from Latin America, Africa and Asia. The lack of interest-rate action has coincided with a marked worsening of Turkey's relations with the US.
"You dare to sacrifice 81-million (in) Turkey for a priest who is linked to terror groups?"