Turkey to boycott US-made electronic products: Erdogan

Cornelia Mascio
Agosto 16, 2018

Meanwhile, the lawyer representing Andrew Brunson, the American pastor at the center of the dispute, renewed an appeal for his release from house arrest and for a travel ban imposed on him to be lifted.

Turkey's finance minister will also seek to reassure global investors in a conference call on Thursday.

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 Turkish central bank has promised that Turkish banks will have all the money they need.

"Turkey's central bank managed to calm down the currency markets for the time being by committing to provide liquidity for the embattled Turkish lira", said Fiona Cincotta, senior market analyst at traders City Index.

The dispute with the United States, focused on a tit-for-tat tariff row and Turkey's detention of Brunson, helped turn the currency's steady decline into meltdown.

Turkey's troubled lira tumbled on Monday to fresh record lows against the euro and dollar, piling pressure on stock markets on fears the country's crisis could spill over into the world economy.

Turkey has also raised tariffs on some United States products "in response to the U.S. administration's deliberate attacks on our economy", Vice President Fuat Oktay wrote on Twitter.

As NPR explained in a primer on the dispute, much of the ill will shared by Turkey and the US stems not only from the back-and-forth on tariffs, but also from a diplomatic dust-up centered on two men of faith.

The move is seen as retaliation for the United States' decision to sanction two Turkish ministers over the detention of an American pastor on terror-related charges, and to double tariffs on Turkish steel and aluminum imports.

In addition to the tariffs, the Trump administration has placed sanctions on Turkey's Minister of Justice, Abdulhamit Gul, and Minister of Interior, Suleyman Soylu.

Also helping the Turkish currency are moves by Turkey to gain favour with European countries.

Despite the political tensions, the lira rebounded some 6 per cent on Wednesday, strengthening to around 6.0 to the dollar. "Such policy can't be a basis for normal dialogue and it can't last long".

"Copper and other commodities at first reflected the downturn in China but now have been exacerbated by expectations of further economic weakness", said Kristina Hooper, chief global market strategist at Invesco in NY.

"Rates have gone up by 10 per cent".

In New York Tuesday, the Dow, S&P 500 and the Nasdaq all posted gains of at least half a per cent, as fears eased that the problems with the lira might affect other emerging economies and currencies.

It was supported by news of a planned conference call on Thursday in which the finance minister will seek to reassure investors concerned by Erdogan's influence over the economy and his resistance to interest rate hikes to tackle double-digit inflation. Hovenier has called for the cases against Brunson and others held in Turkey to be resolved "without delay" and in a "fair and transparent manner".

Relations between North Atlantic Treaty Organisation allies Turkey and the United States are at a low point, hurt by a series of issues from diverging interests in Syria, Ankara's plan to buy Russian defense systems and the detention of an American pastor, Andrew Brunson.

Hurriyet newspaper said the court in Izmir rejected the appeal, but that a higher court would review the appeal.

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