Erdogan says Turkey to boycott US electronic goods

Cornelia Mascio
Agosto 14, 2018

A man shops in a market in Istanbul, Monday, Aug. 13, 2018.

The Turkish Central Bank announced on Monday that banks would be given all the liquidity - help to keep money moving - they needed.

The Turkish crisis and the potential contagion is in full swing after the CBRT failed to calm investors.

"They discussed Turkey's continued detention of Pastor Andrew Brunson and the state of the US-Turkey relationship", said the statement.

Investors seemed to look through the fiery rhetoric, pushing the lira off record lows on reports that Turkish and US government officials held talks on Monday.

The visit came after Brunson's Turkish lawyer launched a fresh appeal to a Turkish court for his release.

The Russian foreign minister claims that the US increased use of sanctions will erode the dollar's role as the top reserve currency.

"We expect the United States to be faithful to our traditional friendly relations and North Atlantic Treaty Organisation alliance", Mevlut Cavusoglu said in his opening speech at the 10th Ambassadors' Conference in the capital Ankara. That's because investors have lost confidence in management of the economy under Erdogan, who believes in unorthodox economic policy, demands low interest rates and constantly assails "the interest rate lobby".

Declaring economic war against the US, Erdogan said Turkey, a North Atlantic Treaty Organisation ally, will no longer purchase Apple products or other electronic devices made by American companies. Erdoğan's reluctance to accept higher interest rates amid rampant inflation and mounting foreign debt has spurred fears among analysts that Turkey's once-vibrant economy could soon crash.

The lawyer representing an American pastor held in Turkey has renewed an appeal for his release from house arrest.

The tensions spooked investors already anxious by the fallout of a row between Turkey and its North Atlantic Treaty Organisation ally, with the lira falling sharply last week. He also said on Friday that he had ordered to double United States tariffs on Turkish aluminum and steel imports to 20 percent and 50 percent, respectively.

Mr Brunson has denied charges of espionage, but faces up to 35 years in jail if found guilty. In particular, the report flags that Spain's BBVA, Italy's UniCredit and France's BNP Paribas, all of which have significant operations in Turkey, are especially exposed.

Turkish President Recep Erdogan has confirmed that his country will boycott US electronic goods, including Apple's flagship iPhone device - which was helpful in saving his regime in 2016.

Showing no signs of backing down in the standoff, President Recep Tayyip Erdogan said Turkey would stop procuring US-made iPhones and buy Korean Samsung or Turkish-made Vestel products instead.

"Some close the doors and some others open new ones", he said.

It was unclear how Erdogan meant to enforce the boycott.

"We will boycott United States electronic goods", Erdogan said in a televised speech, raising the stakes in a spat that has seen the Turkish lira plunge to record lows. The central bank, guided by the government, refused to raise interest rates to curb inflation and the drop in the Turkish Lira.

"We can only say "goodbye" to anyone who sacrifices its strategic partnership and a half-century alliance with a country of 81 million for the sake of relations with terror groups", he said."You dare to sacrifice 81-million Turks for a priest who is linked to terror groups?"

US President Donald Trump said Friday he had doubled steel and aluminium tariffs on Turkey, which pushed the Turkish lira to new historic lows against the dollar.

That helped ease tensions in financial markets, with the Turkish lira stabilizing somewhat near record lows.

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