Turkey's Erdogan stands by opposition to high interest rates

Turkey's Erdogan stands by opposition to high interest rates

Turkey's Erdogan stands by opposition to high interest rates

A financial shockwave ripped through Turkey on Friday, when its currency nosedived on concerns about its economic policies and a dispute with the USA, which President Donald Trump stoked further with a promise to double tariffs on the North Atlantic Treaty Organisation ally.

"It is making an operation against Turkey ..."

On Friday, the lira sank to a fresh record low, falling as much as 17 per cent at one point, prompting calls from investors for central bank action to shore up the lira.

Erdogan renewed his call for Turks to sell dollars and buy lira to boost the currency, while telling business owners to not stockpile the American currency. "With God's permission we will overcome this".

Erdogan appeared unworried by the punitive measures imposed by the United States, saying Turkey could turn to other partners and again terming the crisis an "economic war".

Turkish President Recep Tayyip Erdogan has accumulated more and more control over the country's central bank as well as its financial system, which is now run by his son-in-law.

"There was some hope that maybe they'd step back from the brink and you'd see a re-establishment of central bank independence", he said. "You should know that to keep this nation standing is. also the manufacturers' duty".

The dispute between the two North Atlantic Treaty Organisation allies - which reached new intensity over the detention of an American pastor in Turkey - has hammered the lira and also raised questions over the future partnership between Washington and Ankara.

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U.S. President Donald Trump has demanded the pastor's release, the most pressing of several disagreements between Washington and Ankara.

"Some close the doors and some others open new ones", he added. The White House said the newly imposed sanctions would take effect from August 13.

"We will say bye bye to those, who sacrifice their strategic partnership and alliance with a country of 81 million people on the altar of their relations with terror organizations", he said.

Washington slapped sanctions on Turkey's interior and justice ministers this week, angering Ankara which responded with the tit-for-tat move, with Turkey saying they will freeze the assets of the USA "justice and interior ministers" last week.

Washington "must give up the misguided notion that our relationship can be asymmetrical", he said in the opinion piece.

This day, the spokesman of the Turkish government, Ibrahim Kalin, assured that these actions will not be able to bring down their country, but will isolate the United States even more in the global context. "You dare to sacrifice 81-million Turkey for a priest who is linked to terror groups?" Trump has described his detention as a "total disgrace" and urged Erdogan to free him immediately.

The two sides seemed to have failed to resolve the deadlock though bilateral talks in Washington earlier this week during the visit of a Turkish delegation headed by Deputy Foreign Minister Sedat Onal and made up of officials from Turkey's justice, finance and foreign ministries.

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