Turkish lira continues to nosedive, amid 'economic war' with the

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President Trump's announcement Friday morning that he has authorized the doubling of tariffs on steel and aluminum imports coming from Turkey came in a tweet that noted, "Our relations with Turkey are not good at this time!".

Donald Trump said Friday his administration had doubled steel and aluminum tariffs on Turkey, imposing a 20 percent duty on aluminum and a 50 percent levy on steel.

Mr Erdogan also wrote in the New York Times that unless the U.S. changed course, Turkey would look for new friends and allies.

Turkey remains at loggerheads with the U.S. in one of the worst spats between two North Atlantic Treaty Organisation allies in years over the detention of American pastor Andrew Brunson and a host of other issues.

It did not disclose details, but suggests Turkey might gravitate further away from its North Atlantic Treaty Organisation allies towards co-operation with Russian Federation, whose relations with the West are at their lowest since the Cold War.

On Friday Turkey made it clear Erdogan had spoken on the phone with Russian President Vladimir Putin after the latest United States tariffs, with the two men "expressing pleasure" that relations were progressing "positively".

Mr Erdogan also remained defiant, as he urged the Turkish people to exchange foreign currency or gold for lira.


"If there is anyone who has dollars or gold under their pillows, they should go exchange it for liras at our banks". The president - instead of reassuring the markets, whose collapsing confidence is one of the main drivers behind the lira's unprecedented depreciation - slammed Western countries and accused them of waging economic warfare on Turkey.

The currency had spent much of 2014 hovering at just over two to the USA dollar but broke through the three mark for the first time after the 2016 failed coup bid and then slid to four earlier this year.

On Friday, the Turkish currency plunged to another record low amid concerns over Erdogan's unorthodox economic policies and a diplomatic row with the United States that has led to sanctions.

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

Turkish Presidential Spokesman Ibrahim Kalin earlier wrote in the Daily Sabah newspaper that the United States runs the risk of losing Turkey as its ally.

Erdogan said his decision to sanction the U.S.in retaliation for American sanctions was to convey that Turkey "does not respond to threats".

The nominally independent central bank has defied pressure over the last few weeks to hike interest rates in the face of high inflation and the collapsing currency.


State Department Spokesperson Heather Nauert told reporters on August 9 that the United States would define progress in relations with Turkey with Brunson's return to the United States.

Turkey's President Recep Tayyip Erdogan addresses his supporters in Bayburt, Turkey, Friday, Aug. 10, 2018. The Turkish currency shed about 17% of its value in a single day.

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

The ailing Turkish lira had already lost one third of its value this year, largely over worries about Erdogan's wider control of the economy.

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

"Making a speech like Albayrak's in the midst of a currency free fall without a single concrete measure shows utter lack of comprehension about what's happening and what's required", tweeted Harvard economist Dani Rodrik.


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