Erdogan says Turkey to 'boycott' United States electronic goods

Marco Green
August 14, 2018

"If they have iPhones, there is Samsung on the other side, and we have our own Vestel here", he said, referring to the Turkish electronics company, whose shares rose five percent.

The Turkish lira rebounded 6% in Tuesday trading, haven fallen 25% in the past month, weighed down by the spat with the USA and wider concerns about the country's stalling economy. 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.

Turkey's President Recep Tayyip Erdogan came under renewed pressure on Monday to reverse his economic policies as the troubled lira tumbled to record lows against the euro and dollar.

Concerns about contagion prompted investors to sell riskier assets on Monday including emerging market currencies and stocks in Asia.

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

The Bank of Korea also said that the South Korean economy is strong enough to prevent external risks from spreading to the local market.

Disputes with North Atlantic Treaty Organisation ally the United States have also contributed to the lira's plunge.

Moves to ease Turkey's economic woes have failed to stop market turmoil as the country's row with the United States deepens. He also urged manufacturers not to rush to buy dollars. While tensions with the United States need to be resolved, the main problem in Turkey is "a lack of market-friendly officials that have experience with markets".

The iPhone is among the US electronic good that could be barred from Turkey as part of a new boycott announced by the country's president on Tuesday.

Relations between Washington and Ankara have taken a turn for the worse amid bitter dispute over the detention in Turkey of an American evangelical pastor on terrorism charges. "It is a national fight", he says.

"In the framework of intraday and overnight standing facilities, the central bank will provide all the liquidity the banks need", the regulator said in a statement early Monday.

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.

Mr Albayrak said the country would "act in a speedy manner" and its plan included help for the banks and small and medium-sized businesses most affected by the dramatic volatility in the lira. "I believe the new and important topics will be discussed in this call, otherwise there would not be such an attempt".

Brunson was charged with committing crimes, including spying for the PKK - listed as a terrorist group by both the United States and Turkey - and the Fetullah Terrorist Organization (FETO), the group behind the defeated coup attempt of July 2016.

He had been in jail for nearly 20 months when a court in July ordered him moved to house arrest.

Erdoğan also said that the USA stabbed Turkey in the back, three days after he sought to bolster ties with Russian President Vladimir Putin.

On Monday, Erdogan turned his attentions to social media with the announcement that Turkish authorities are investigating 346 accounts that "provoke the currency rate increase", the official news agency Anadolu reported. But thanks to the globalisation of financial markets, decisions in Ankara can affect jobs in the rest of the world.

Other reports by Click Lancashire

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