Currency crisis in turkey- Qatar offers aid to Ankara

Cornelia Mascio
Agosto 16, 2018

The Turkish lira continued to rebound from record losses on Thursday a day after Qatar pledged $15 billion in investments to help Turkey's economy.

The currency strengthened some 2 percent against the dollar, trading at around 5.85 per dollar, hours before Treasury and Finance Minister Berat Albayrak was scheduled to update worldwide investors about the economy.

Last Friday, U.S. President Donald Trump said he had authorised higher tariffs on aluminium and steel imports from Turkey.

A banking watchdog's step to limit foreign exchange swap transactions also helped the currency.

Three big companies operating in Dogubank, a trade centre specializing in the sales of electronic products in central Istanbul, suspended $50 million worth of iPhone orders, the Turkish daily said.

Businessmen holding US dollars stand in front of a currency exchange office in response to the call of Turkish President Tayyip Erdogan on Turks to sell their dollar and euro savings to support the lira, in Ankara, Turkey Aug. 14, 2018.

The Turkish government doubled its tariffs on imports of American cars and alcoholic beverages to 120 and 140 percent, respectively, CNN reported.

While the Brunson matter appeared far from being resolved, Turkish President Tayyip Erdogan got a shot in the arm from Qatar's Emir, who approved a package of economic projects, investments and deposits after the two met in Ankara.

The weakness of the Turkish currency has rippled through global markets.

"The president has a great deal of frustration (about) the pastor not being released", White House press secretary Sarah Sanders said Tuesday. Highlighting the need to coordinate, he reminded that "lots of different countries" also faced US sanctions.

The White House stance appeared to give Turkish authorities little incentive to work for the release of Andrew Brunson, a pastor on trial in Turkey on terrorism charges and whose case Turkish officials have said was a matter for the courts. Brunson's lawyer told CBS News that a higher court was still considering the appeal and could overrule that decision.

Vice President Fuat Oktay said on Twitter that the tariffs on certain products were increased "within the framework of the principle of reciprocity in retaliation for the deliberate economic attacks by the United States".

Erdogan has called for a boycott of USA electronic goods and Turkish media have given extensive coverage to anti-U.S. protests, including videos on social media showing Turks apparently burning dollar bills and destroying iPhones.

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