Volumes Surge on Turkey's Crypto Exchanges as Lira Tanks

Andrew Cummings
August 12, 2018

"The United States should know that the only result such sanctinos and pressure will bring... will be harming our relationship as allies", the Turkish foreign ministry said in a statement.

Erdogan is also upset at the protection United States coalition forces are providing the Kurds in Syria, against the invading Turkish army.

Trump's tweet caused a further drop in the Turkish currency, which is now down 13 percent on the day. What possible reason could there be behind the lira which was at 2.8 against dollar in July 15, 2016 to slide below 6 yesterday? Following the tweet, Turkey responded by imposing duties on $1.8 billion in US goods including coal and paper.

Turkey's financial crisis and further US pressure spurred more concern among investors as fears appeared to spread to American markets.

The New York Times suggested that Trump could also be trying to offset the effects of Turkey's weakened currency on the existing tariffs.

Trump said Friday on Twitter that he authorized the doubling of tariffs, noting that "aluminum will now be 20% and steel 50%".

"Turkey expects other member countries to abide by worldwide rules", the country's trade ministry said in a statement.

Aaron Stein, senior fellow at the Atlantic Council think tank in Washington, said Trump has "personalized the Brunson issue and feels like Erdogan cheated him".

"If they have their dollar, we have the people, we have Allah, " he said. "Hopefully we will overcome this disaster and we will also successfully overcome this economic war", Erdogan said.

In 2017, 19 billion dollars worth of goods were traded between the USA and Turkey.

Turkey has detained Mr Brunson for almost two years, accusing him of links to the outlawed Kurdistan Workers Party and the Gulenist movement, which Turkey blames for a failed coup in 2016. "I am once again calling on those in America: It is a pity that you choose a pastor over your strategic partner in North Atlantic Treaty Organisation", he said.

"We will continue to support our iron, steel and aluminum exporters by defending their interests against illegal practices of other countries on every global platform, especially WTO", it said. "Because this is the language they understand", he said.

Meanwhile, markets are deeply concerned over the direction of economic policy under Erdogan, with inflation at almost 16 percent but the central bank reluctant to raise rates in response. But invoking national security is the only way to square Trump's policy with USA law and WTO rules.

Although the pastor's arrest has soured already-fragile ties with Washington, Erdogan said there would be no let up in Brunson's case, vowing: "We have not made concessions on justice so far, and we will never make any".

Turkish officials insist the outcome of Brunson's case exclusively relies on the judiciary, a claim the United States has refused to buy in the light of Erdogan's earlier suggestions to swap him with Turkish opposition exiles residing in the US.

The Turks have also restricted American use of the Incirlik Air Base. It is host to a critical part of the Western alliance's missile defense system again Iran. "It is a threat", said Rodriguez Valladares.

-Turkish relations is a dispute over an American clergyman who has been jailed in Turkey since December 2016.

Other reports by iNewsToday