Is the US-Turkey crisis beyond fix? | USA

Is the US-Turkey crisis beyond fix? | USA

The lira tumbled 13 percent in one day, to 6.51 per dollar, a massive move for a currency that will make the Turkish poorer and further shake worldwide investors' confidence in the country.

The diplomatic dispute with the USA was one of the triggers for the turmoil this week.

Erdogan's "tight grip" on the central bank and the fact "higher interest rates do no fit with Turkey's economic growth strategy" meant that the central bank has kept interest rates on hold, Nora Neuteboom, economist at ABN Amro, told AFP.

"Aluminum will now be 20 percent and Steel 50 percent", he said in a Twitter post.

Reminding the world of the time when Turkey rushed to America's help whenever necessary, during the past six decades, Erdogan recounted Turkish contribution in defusing the Korean and Cuba missile crises, and sending troops to Afghanistan in the wake of the September 11 terror attacks.

As the lira tumbled in value - with no breakthrough in sight in the impasse with the United States, sparked by the jailing of American pastor Andrew Brunson - the government has remained sanguine with few comments aimed at rallying markets.

Trump's "jubilation in inflicting economic hardship on its North Atlantic Treaty Organisation ally Turkey is shameful", he wrote.

Trump pointed out on Twitter that the lira was not doing well, but one of Erdogan's economic advisers, Yigit Bulut, responded that the sell-off in the lira had caused $300 billion in losses in the US stock market.

On Friday Turkey made it clear Erdogan had spoken on the phone with Russian President Vladimir Putin after the latest USA tariffs, with the two men "expressing pleasure" that relations were progressing "positively".

"To convey that Turkey does not respond to threats, we retaliated by sanctioning multiple American officials".

After his June 24 election victory, Erdogan put his son-in-law Berat Albayrak in charge of a newly expanded finance ministry while a new presidential system did away with the office of prime minister, whose last incumbent Binali Yildirim had on occasion urged caution in economic policy.

Turkey's Erdogan calls on Turks to buy lira for 'national battle'
The lira fell 7% against the dollar to 5.9655 on Friday morning after hitting an all-time low earlier in the session. The tech-heavy Nasdaq composite was down 83 points, or 1.1%, poised to end an eight-day winning streak .

"International investors would like to see the same actions taken in Argentina recently: much higher interest rates, [and] a commitment to address inflation, improve fiscal performance and engage with multi-lateral lenders like the IMF", Hasnain Malik, equity strategist at Exotix Capital, said.

Independent analysts argue the central bank should instead raise rates to tame inflation and support the currency.

"Our concern is that there is little appetite within the Turkish government or central bank to tighten policy, let alone turn to the International Monetary Fund for support". But since adopting increased powers, Erdogan appears to have greater control over the bank as well. On Friday, The New York Times published an article by Erdogan himself. "You are exchanging your strategic partner in North Atlantic Treaty Organisation for a priest". "This is a domestic and national struggle". "Relations with countries who behave like this have reached a point beyond salvaging", said Erdogan, who warned of "economic war".

"They say we will not give this or that".

According to the Capital Economics consultancy, the plunge in the lira risks putting further pressure on the banking sector in Turkey due to the scale of the credit boom and one third of bank lending being denominated in foreign currencies.

Coupled with an inflation rate of almost 16 percent, that could cause a lot of damage to the local economy.

Aylin Ertan, a 43-year-old caterer in Ankara, said she was concerned over the future of her small business. "On some days, I end the day with a loss".

Reverberations spread through global financial markets, with European stock markets especially hit as investors took fright over banks' exposure to Turkey.

At its lowest level lira traded at 6.801 against the U.S. dollar - a considerable decline from 5.54 at the end of the Wall Street trading on Thursday.

Erdogan has cast the sell-off in the currency that has followed the trade row as an economic war and an attempt to undermine Turkey's economy.

Related News:

  • Lawsuits accuse Tesla's Musk of fraud over tweets, going-private proposal

    Lawsuits accuse Tesla's Musk of fraud over tweets, going-private proposal

    The complaint alleges violations of US securities law and was filed Friday as a class action in federal court in San Francisco. Such investors have always been an irritant for Musk, who has sometimes used Twitter to criticize them.
    Anderson takes five as India 107 all out at stumps

    Anderson takes five as India 107 all out at stumps

    Virat Kohli was involved in an almighty mix-up that led to Cheteshwar Pujara being run out as India were skittled for 107. Pujara, who has shown in the past he can cope with typical English conditions, set off for a single off Anderson.
    High number of Cape Cod mosquitoes with West Nile virus

    High number of Cape Cod mosquitoes with West Nile virus

    DEET-Apply repellent containing an EPA-registered active ingredient, such as DEET, and follow the directions on the package. There have been more than 240 cases of west nile virus and 8 confirmed deaths since it came to Butte County in 2004.
  • News Corp chief backs Foxtel despite subscription revenue fall

    News Corp chief backs Foxtel despite subscription revenue fall

    News Corp Australia reported growth in digital advertising revenues, however overall revenue was down 3 per cent over the quarter. Bloomberg LP, the parent of Bloomberg News, competes with News Corp.in providing financial news and services.
    Trump condemns racism on Charlottesville anniversary

    Trump condemns racism on Charlottesville anniversary

    Virginia Senator Mark Warner, (D), said that Trump shares responsibility for the violence in Charlottesville. Ahead of the weekend, it was unclear whether white supremacists would try to reprise the rally.
    All 5 gates of Idukki Dam opened as Kerala battles unending rains

    All 5 gates of Idukki Dam opened as Kerala battles unending rains

    More than 10,000 people have been shifted to 157 relief camps across the state in the last two days, the government said . All passenger trains on the Kanjikode-Walayar stretch in the Palakkad-Podanur section were disrupted because of the rain.
  • Trump has choice words for ex-aide Omarosa

    She acknowledges she had never been able to obtain or hear the tapes but said three unnamed sources had described their contents. She said he then played it off as a joke but she knew he was serious. "It's how I'm going to make great deals for the country".
    Sony's Marvel Universe Plans - Every Movie Currently Happening

    Sony's Marvel Universe Plans - Every Movie Currently Happening

    Sony's Spider-Man universe which will make its true debut in the upcoming Venom film starring Tom Hardy has an official name. Prince-Blythewood will still be attached as producer to both films, but it doesn't appear like she'll be helming either.
    Fortnite is out now on Android exclusively on Samsung

    Fortnite is out now on Android exclusively on Samsung

    Just fire up the Play Store on your phone, and search for " Fortnite Mobile" or some variation on the name to get the message. If you're running Android 9 Pie on a compatible phone, you can download Digital Wellbeing now from the Google Play Store .
  • Discord to Start Selling Video Games

    Discord to Start Selling Video Games

    There will also be a "First on Discord " list of titles, comprised of indie games that Discord will work to bring to fruition. It was confirmed via email by a representative that "all games [offered on the storefront] will be curated by Discord ".
    Betts Homers In 9th To Complete Cycle

    Betts Homers In 9th To Complete Cycle

    He's hit his first career walk-off homer, clubbed his 100 career home run, and he's now leading the Majors in batting average. It was also Betts' fifth four-hit game this season and upped his MLB-leading average to.347. "It's tough, him and J.D.
    Samung Galaxy Note 9: Hands-on!

    Samung Galaxy Note 9: Hands-on!

    Firstly, the Note 9 ships with a new and improved S Pen, which comes with Bluetooth LE (Low Energy) baked-in for the first time. Just by using a single button, you can automatically enter a party of two purely based on previous reservations.


Most liked

Tiger Woods is in hunt but laments one hole that got away
I made an adjustment over at 17, I wanted to make sure I got this to the hole and then I blow it by 4 feet and then miss it. The high point of his back nine came at 10, where he once again got up-and-down for par after driving it out of position.

Grieving killer whale carries dead calf for over two weeks
I can't believe she is still carrying her calf around", Ms Giles said. "The other concern is that she might be food-limited". Those samples have been sent for analysis, specifically for harmful bacteria and fungi from the airway.

Everything You Need To Know About ICBC’s New Premiums
Each year after that, it will extend the period by one year until 2027, when the full 10-year period will be in place. But crashes caused by the learner before they get their licence won't be counted in their driving history.

Championship report: Derby County 1 Leeds United 4
Derby manager Frank Lampard admitted his side had been handed some hard lessons after they were beaten 4-1 at Pride Park by Leeds.

White House Blasts Omarosa’s Book Claiming Trump Used Racist Remarks
When she was sacked , she said she had a "growing realization that Donald Trump was indeed a racist, a bigot and a misogynist". Omarosa is, according to Sanders, a "disgruntled" former employee, trying to profit from her time spent with the president.

Monsanto to appeal $289 million verdict that Roundup caused man's cancer
The case of school groundskeeper Dewayne Johnson was the first lawsuit to go to trial alleging glyphosate causes cancer. Although not involved in the just-concluded trial, the firm represents more than 100 clients now with similar claims.

Trump attacks National Football League protesters
Numerous players, from different teams, wanted to show their "outrage" at something that a lot of them are unable to define.

EPL: Mourinho hints at problem with Manchester United board over transfers
UNITED have decided they will NOT be signing Toby Alderweireld , Harry Maguire and Ivan Perisic on deadline day. Pogba was surprisingly named as a starter by Jose Mourinho , having only returned to training last week.

How the type of underwear men wear can affect their fertility
These differences were still apparent after accounting for factors like age or their level of physical activity. A number of small-scale studies previously have linked tighter underwear to lower sperm counts , Chavarro said.

Crocs to close manufacturing plants in Mexico, Italy
Crocs has announced that it is selling off its last two factories and that its chief financial officer will be leaving next year. Crocs share prices declined to more than half their previous value between 2014 and 2017, falling to $5.94 each at their lowest.

Jordan Ayew Makes Loan Move To Crystal Palace
The 26-year-old Ghana International will try to help Palace improve on their 11th place finish in the Premier League last season. Ayew had arrived earlier in London to finalize the move in time to beat the transfer deadline at 5pm British time.

Ryan Fox still in touch with US PGA Championship leaderboard
US Open champion Koepka and Schwartzel both missed putts on the last for 62s that would have equalled the lowest round in a major. Unfortunately, Finau carded a triple bogey on the par-3 6th hole, which brought his cut probability back down to 50 percent.

Brad's Astro Extra: Best way to watch the Perseid meteor shower
The Perseids arrive each year in the night skies when the Earth passes through the cosmic trail of Comet Swift-Tuttle. That will make the light from those meteors really pop! And don't forget to grab your camera before you head out.

Liverpool's Danny Ings joins Southampton on loan
Danny Ings departed Liverpool on Thursday with a message of luck for the club he has called home for the past three years. He is as fit now as at any point of his career I would bet and he just requires the opportunity.

More West Nile-positive mosquitoes found
Coastal Health District officials want to remind residents to take steps to avoid mosquito bites and prevent mosquito breeding. Mosquito netting can protect one's face and neck, and infants in carriages, strollers, and playpens.