Markets rattled as Turkish lira dives to record lows

Markets rattled as Turkish lira dives to record lows

The details would be unveiled shortly, the country's finance minister told Turkish newspaper Hurriyet. Turkey considers the control of regions in northern Syria by the SDF and the YPG a direct threat against its national security due to the ongoing conflict with the PKK since early 1980 that killed more than 40,000 people and cost billions to the country's economy.

The Turkish lira continues to rapidly depreciate in value against the US dollar after the Trump administration announced it was doubling tariffs on Turkish steel and aluminum last week.

In Asian trading, the euro also skidded to a one year low of $1.13, the single currency's lowest level against the United States currency since July 2017.

"The Turkish lira remains volatile and it is too early to say the lira has settled down".

These import taxes came on top of 10% additional tariffs on aluminum and 25% on steel from all countries, in a bid by Trump to protect the U.S. steel industry and please voters in America's industrial heartland.

"We have very extensive trade and economic relations, companies are intensively operating on a mutual basis, these are the issues, which are traditionally discussed [by the leaders]", he said. There is no economic reason. "This is called carrying out an operation against Turkey".

It comes after the Turkish currency fell to a new low of 7.2 lira to the dollar, dragging the MSCI world equity index, which tracks shares in 47 countries, down 0.6 per cent as markets opened.

"I am specifically addressing our manufacturers: Do not rush to the banks to buy dollars", he said.

Businesses should "know that keeping this nation alive and standing isn't just our job, but also the job of industrialists, of merchants".

Why is the lira falling?

The dispute between the North Atlantic Treaty Organisation allies - brought to a new intensity by Turkey's holding of an American pastor for two years - has raised questions over the future of their partnership and fanned fears of a looming economic crisis in Turkey.

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And yet our leaders have failed us, and that's exactly what this campaign is all about: taking care of the families of this state. Green Party candidate Jennifer Kurland was unopposed in the primary. "We see it happening all across the country".

Both are also no strangers to seeing their own currencies savaged by the market.

He said the USA would not achieve aims by exerting pressure and imposing sanctions on Turkey.

Foreign Minister Mevlut Cavusoglu said Monday that the United States would not achieve aims by exerting pressure and imposing sanctions on Turkey.

The dispute centres on Turkey's refusal to release USA pastor Andrew Brunson.

Trump authorized an increase in tariffs on Turkish aluminum and steel products on August 10, while the USA also imposed sanctions on Turkish justice and interior ministers for their alleged role in the arrest American pastor Andrew Brunson, who is under arrest for his alleged links with PKK and Gülenist Terror Group (FETÖ).

Erdogan has remained defiant after Trump doubled tariffs on aluminum and steel imports from Turkey to 20% and 50%, respectively.

What are officials doing about it?

In a call with reporters late Sunday, Turkey's finance minister Berat Albayrak said Ankara was planning to roll out an "action plan" on Monday in response to the crisis.

Turkey will "start looking for new friends and allies" if Washington maintains its "misguided notion that our relationship can be asymmetrical", he said, adding: "The most important thing is breaking the hands firing these weapons".

Mr Erdogan has presided over soaring inflation and borrowing levels, but insists the lira's plight is the result of a "campaign" led by foreign powers.

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