Turkey's lira crisis: How bad can it get?

Berat Albayrak

Turkish Finance Minister Berat Albayrak is to unveil the plan for Turkey's economy on Friday

With the currency diving, Trump authorized higher tariffs on Turkish imports on aluminum and steel of 20% and 50% respectively.

But the souring in U.S. -Turkey relations could give new strength to Russia-Turkey ties, already a source of concern among Turkey's Western allies.

Earlier this week, a Turkish delegation returned from Washington with no movement on the detention of American pastor Andrew Brunson, who is under house arrest in Turkey over terrorism charges.

"The United States should know that the only result such sanctinos and pressure will bring... will be harming our relationship as allies", the Turkish foreign ministry said in a statement.

World stock markets fell Friday, particularly in Europe, as investors anxious about the financial stability of Turkey, where the currency has nosedived.

The lira tumbled about 10 per cent on Friday to another record low as investors worry about Erdogan's unorthodox economic policies and U.S. sanctions. He returned to his familiar refrain of urging Turks to use their reserves of dollars, euros and gold to buy up lire. "Don't worry", Erdogan told a crowd in the northeastern city of Bayburt. "Don't heed them. Don't forget, if they have their dollars, we have our people, our God", Erdogan said.

But Erdogan vowed there would be no easing of the law in Brunson's case, saying: "We have not made concessions on justice so far, and we will never make any".

Progress On Mendocino Complex Fire As Firefight Enters 3rd Week
Clark's arrest marks the second such detention in two weeks. "I've been up for like 20-some-odd days", Clark said. Below are several of the best, mostly from the Holy Fire, but the last comes from Northern California.

Unilateral steps taken by the U.S. only harm its interests and security, Turkish President Recep Tayyip Erdogan said on Friday in an article he wrote for The New York Times.

The lira dropped by over 11 percent in value in one day on Friday morning to almost six lira per dollar.

"We implore President Trump to return to the negotiating table", Trade Minister Ruhsar Pekcan said.

"Unless the United States starts respecting Turkey's sovereignty and proves that it understands the dangers that our nation faces, our partnership could be in jeopardy", Erdogan said.

The latest escalation came as Turkey's Economy Minister Berat Albayrak, who is Erdogan's son-in-law and a trusted lieutenant, unveiled what was touted as a new economic plan, pledging Central Bank independence, tighter budget discipline and sustainable and healthy growth.

A Turkish man waits to change his USA dollars with Turkish liras inside a currency exchange shop in Ankara, Aug. 10, 2018.

It all started with Turkey's own mistakes - or, more accurately, with Turkish President Recep Tayyip Erdogan's.

Chris Pine and Chris Hemsworth out of 'Star Trek 4'
Or, attempt to bring the involved parties back to the table in hopes of a deal that would put them both into the intended roles. Clarkson ( Jessica Jones, Succession ), the first woman to direct a Star Trek film in franchise history.

In modern economies, central banks are meant to be independent of governments to make sure they set policies that are best for the economy, not politicians.

"Don't forget, if they have their dollars, we have our people, our God", he said.

On Saturday he repeated his call to Turks to help support the lira to win what he described as a "war of independence". For China, stabilizing a fellow emerging economy's currency has value, but Beijing could also benefit from becoming an economic friend to a North Atlantic Treaty Organisation state whose relationship with the West is increasingly strained.

The United States is the biggest destination for Turkish steel exports. In July, the president warned in a tweet that the U.S.

Foreign investors could be spooked and try to pull their money out, reinforcing the currency drop and potentially leading to financial instability.

"The basic reason the exchange rate has gone off the rails is that confidence in the management of the economy has disappeared both domestically and overseas", said Seyfettin Gursel, a prominent economist and a professor at Turkey's Bahcesehir University.

Trump calls Omarosa a 'low-life'; says Sessions is 'scared stiff'
The book alleges that Manigault Newman was offered $15,000 a month from the president's campaign coffers to stay silent after she was sacked from the White House last December.

Latest News