U.S. Embassy in Turkey Denies Pastor Andrew Brunson Will be Released

Anna Jefferson
August 14, 2018

The panic sweeping through emerging markets eased Tuesday as Turkish assets got some respite following the lira's 20 percent collapse in the past five days.

On Monday, the central bank announced a series of measures to "provide all the liquidity the banks need" - but offered no hint of a rate increase.

Turkey remains at loggerheads with the United States in one of the worst spats between the two North Atlantic Treaty Organisation allies in years over the detention for the last two years of American pastor Andrew Brunson and a host of other issues.

"We will boycott USA electronic goods", Erdogan said in a speech in Ankara, again showing no sign of compromise in the dispute.

The lira has plunged 40 percent this year and saw drops of 16 percent Friday and another seven percent on Monday. Erdogan, 64, talked about "economic hitmen" and a "deeper operation conducted against" Turkey, which is also coping with its own divisions - between pious Muslims and secular citizens, minority Kurds and the state, and those for and against the polarizing president.

Why Turkey's currency is plunging and what it means
Harsher US tariffs were likely to punish Turkey's already faltering steel exports to the United States. It is unclear how that would justify higher tariffs on Turkey but not other countries.

Turkish President Recep Tayyip Erdogan has announced a boycott of American electronic products in response to Washington's economic pressure against Ankara after the detention of a USA pastor in Turkey. It was up 5 percent on Tuesday, at 6.55 per dollar, having fallen 42 percent so far this year, with most of those losses coming in recent weeks.

In an interview with Hurriyet newspaper, Albayrak said a plan has been prepared for banks and the real economy sector, including small to midsized businesses that are the most affected by the foreign exchange fluctuations.

"We, as the Turkish Airlines, stand by our state and our people".

China's economy is showing further signs of cooling as the USA prepares to impose even tougher trade tariffs.

Erdogan has also urged Turks to extend their hospitality to tourists, who were bringing dollars into the country at a critical time.

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He will surely keep Newcastle up, but the last few days have been nothing like enough for a manager of his quality and ambition. We knew it was going to be hard because some of us, including myself, didn't have any pre-season games.

Turkey has been hit by financial turmoil, with the lira plunging over deepening concerns about the government's economic policies and a diplomatic spat with the United States.

Traders said news that Finance Minister Berat Albayrak will hold a conference call with up to 1,000 investors to discuss the economy might also have helped support the currency. "I believe the new and important topics will be discussed in this call, otherwise there would not be such an attempt". But independent analysts say higher rates are needed urgently to stabilize the currency and Erdogan's hard line is one of the reasons investors are worrying.

Fears over US sanctions and tariffs on Turkey have had a global ripple effect, sending the Russian ruble, the Argentinian peso and the South African rand down along with it.

Turkey's foreign minister says the United States won't achieve aims by exerting pressure and imposing sanctions on Turkey.

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Sanchez, who has over 80 caps for his country, spent previous year on loan at Espanyol. Asked by a fan whether Sanchez is signing, he responded: "Yes at this point".

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