Turkey Lira crisis in pictures: Locals sell wealth to save currency

Share

Prices are already up 16 percent since past year and this week's drop will make that worse. The Financial Times called it "a breathtaking tumble". "Our relations with Turkey are not good at this time!", the President tweeted.

Meanwhile, ING economist Carsten Brzeski told news agency Reuters "some kind of. involvement" by the International Monetary Fund (IMF) was "getting closer". Turkey answered the March tariff announcement by placing its own tariffs on $267 million of USA goods.

All decisions about the way forward rest with Erdogan, and thus far, he seems undaunted. One U.S. dollar traded at 5.96 lira by 2:15 p.m.

I hope we can soon get Pastor Brunson and other Americans released in a win-win fashion for both the U.S. and Turkey."Trump's move to double tariffs on Turkey was even praised by one of the president's most frequent Democratic critics". We are working hard. "It will inevitably push Turkey towards the Russian and Iranian orbit and I think even raises questions over Turkey's North Atlantic Treaty Organisation membership". Its deputy general manager was sentenced to 32 months in prison. At this point, we do not play ball. "Turkey will fight economic hitmen just as it fought the coup plotters".

He said that the decision "demonstrates that the USA is not behaving rationally and is not showing patience when it is needed".

Tensions between the two North Atlantic Treaty Organisation allies have been escalating for some time.

Turkish President Recep Tayyip Erdoğan struck a defiant note in a series of Twitter messages shortly before Trump's announcement. A week later he was moved to house arrest. Minutes before Ankara learned about the higher tariffs, the lira had already hit an all-time low of 6.87 against the dollar.

The Trump administration has called upon Erdoğan to release Brunson for months. In Turkey, that was taken as an intolerable slight to which leaders could not bow.

More news: Transfer: Manchester United in talks to sign Chelsea defender
More news: Manchester United vs. Leicester live stream
More news: Liverpool beat Torino in final pre-season friendly

Looking ahead, it is really the actions of the CBRT that are most important over the coming days.

Tensions between the North Atlantic Treaty Organisation allies also flared in May 2017 after Erdoğan's personal security forces attacked demonstrators protesting his visit to the Turkish Embassy in Washington, D.C.

"When it comes to cornering Turkey to extract certain concessions that undermine our sovereign rights, it is a whole another story". The consequences for millions of Turkish families were very harsh in 2001; they may be even harsher this time. Turkey, you see, has hurt itself with bad policies, tried to blame foreigners for this fact, but then, unbelievably, seen Trump seem to vindicate their scapegoating by trying to bring their economy down in retaliation for them bringing it down themselves. But that seems to underestimate both Erdogan's following and his strong hold on power under the new constitution.

Alan Madison, a spokesman for Borusan Mannesmann's U.S. subsidiary, said the company and its Turkish parent were still studying Trump's new proposal and declined to comment further. "I am afraid there will be a bank run in Turkey, people rushing to withdraw their deposits".

The Lira has plunged 66% since the start of the year, pushing up the cost of goods for Turkish people and shaking global investors' confidence in the country.

Nothing like that seems to be on the cards as yet, but it may come.

"We think that Turkey has a toxic combination of a weak external position (current account deficit), excessive private sector debt and a high level of foreign funding in the banking system".

Share