Erdogan Wants Boycott of US Electronics

Erdogan Wants Boycott of US Electronics

Erdogan Wants Boycott of US Electronics

The geopolitical turmoil in Turkey gave no reprieve to its local currency in the opening session as the Turkish lira continued its freefall, hitting an all-time low of 7.24 versus the USA dollar.

The lira pulled back on Tuesday from Monday's record low of 7.24 after the Turkish central bank pledged to provide liquidity in response to a meltdown that unsettled global markets.

Brunson, who has been living in Turkey for more than two decades, was accused of helping supporters of Fethullah Gulen, a USA -based cleric who Turkish authorities say masterminded the 2016 coup attempt.

Erdogan, who has called himself the "enemy of interest rates", wants cheap credit from banks to fuel growth, but investors fear the economy is overheating and could be set for a hard landing.

The currency has nosedived over the past week, accelerating a months-long decline that has seen it drop 45 percent this year.

Investors are anxious not only about Turkey's souring relations with the US, a longtime North Atlantic Treaty Organisation ally, but also Erdogan's economic policies and the country's high debt accumulated in foreign currencies.

Erdogan said his government would offer further incentives to companies planning to invest in Turkey and said firms should not be put off by economic uncertainty.

Brunson, who has been living in Turkey for more than two decades, was accused of helping supporters of Fethullah Gulen, the US -based cleric who Turkish authorities say masterminded the 2016 coup attempt against President Tayyip Erdogan.

The lira was around 6.55 per dollar Tuesday, up 6 percent from the previous day, when the central bank freed up cash for banks.

"Contagion risks centre on Spanish, Italian and French banks exposed to Turkish foreign currency debt, as well as Argentina and South Africa", warned analysts at ANZ.

"We will stand against the dollar, currency rates, inflation, interest rates".

ENERGY: Benchmark U.S. crude fell 29 cents to $67.34 per barrel in electronic trading on the New York Mercantile Exchange.

Dollar-denominated bonds issued by selected Turkish banks continued to fall on Tuesday, although sovereign bonds steadied.

The White House on Monday said us national security adviser John Bolton met Turkey's ambassador to the United States to discuss the detention of Brunson. "I believe the new and important topics will be discussed in this call, otherwise there would not be such an attempt". "This is called carrying out an operation against Turkey".

Brunson's lawyer, Ismail Cem Halavurt, said the court had up to seven days to decide.

At the weekend Trump said he had authorised the doubling of tariffs on Turkish steel and aluminium to 50 per cent and 20 per cent respectively.

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

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