Turkey's Erdogan Vows Action Against 'Economic Terrorists' Over Lira Plunge

Fredrick Soto
August 15, 2018

Separately, the Istanbul and Ankara prosecutor's offices launched investigations into individuals suspected of being involved in actions that threaten Turkey's economic security, broadcaster CNN Turk and state news agency Anadolu reported.

"We are going to apply a boycott on America's electronic products", Erdogan said Tuesday during a televised speech, adding that there were alternatives, produced by South Korean or Turkish companies. The Bank of Thailand isn't taking pre-emptive steps amid the rout in Turkey as markets are reacting in an orderly manner, Assistant Governor Chantavarn Sucharitakul said.

The appeal document seen by Reuters said the court should halt any unlawful political interventions and lift judicial control provisions imposed on Andrew Brunson.

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 defence systems and the detention of an American pastor, Andrew Brunson. Infuriated by the move, which Washington said was insufficient, Trump sanctioned two Turkish ministers and doubled tariffs on metal imports, adding to lira's slide.

Brunson, 50, is being tried on espionage and terror-related charges, which he and the US government vehemently deny. Stocks dropped 4 percent, with the BIST blue-chip index down around 50 percent in dollar terms this year.

Global markets sustained two days of losses as the Turkish lira plunged and a diplomatic dispute with the US got worse.

Turkey's central bank took action Monday to free up cash for banks as the country grapples with a currency crisis sparked by concerns over President Recep Tayyip Erdogan's economic policies and a trade and diplomatic dispute with the United States.

Showing no signs of backing down in a standoff with the U.S., Erdogan suggested that Turkey would stop procuring U.S. -made iPhones and buy Korean Samsung or Turkish-made Vestel instead.

Other analysts said the euro's gains were unlikely to last long.

It was unclear how Erdogan meant to enforce the boycott.

Tayyip Erdogan made the remarks as the lira slides in response to an ongoing dispute with the United States over the detention of an American pastor.

In a joint statement Tuesday, Turkish business groups called on the government to institute tighter monetary policy in order to combat the currency crisis. Erdogan also unnerved investors when he appointed his son-in-law as finance minister in his new Cabinet after he was elected president in June.

The yuan's bounce was limited following the release of downbeat economic indicators, and it remained in reach of a 15-month trough of 6.8965 set earlier this month. The Argentine peso and India's rupee hit a record low against the dollar.

The Turkish lira has lost more than 40 percent of its value.

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