Published: Sat, August 11, 2018
Global | By Shelia Dennis

Turkish Currency Collapses After Trump Doubles Metals Tariffs

Turkish Currency Collapses After Trump Doubles Metals Tariffs

President Trump and Turkish President Recep Tayyip Erdogan appear in the Roosevelt Room of the White House on May 16, 2017. The U.S. was Turkey's biggest export market for steel a year ago, though exports have fallen since.

On Friday Turkey made it clear Mr 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".

A "gigantic rate hike" of at least 500 basis points to calm markets and a clear commitment from the Central Bank of Turkey to support the currency could help halt the decline, Hordijk said, adding, "Another bandage to stop the lira from bleeding to death would be capital controls, but Erdogan opposes these measures".

One of the hard issues affecting U.S.

His remarks came after US President Donald Trump's decision to raise tariffs on Turkish steel and aluminium.

A financial shockwave ripped through Turkey on Friday, when its currency nosedived on concerns about its economic policies and a dispute with the US, which President Donald Trump stoked further with a promise to double tariffs on the North Atlantic Treaty Organisation ally.

Donald Trump: NFL Players Still Kneeling for Reasons They Can’t Define
The NFL's preseason kicked off last week with the Chicago Bears and Baltimore Ravens playing in the annual Hall of Fame Game. Miami defensive end Robert Quinn raised a fist into the air. " Most of that money goes to the players anyway".

He railed against "those waging economic war" against Turkey.

The president has declared that American importers' reliance on foreign metals poses a national security risk to the United States, and he also has increased the cost of these imports on Japan, Turkey and members of the European Union, the paper reported. Turkey answered the March tariff announcement by placing its own tariffs on $267 million of US goods.

It fell to a record low this morning, and has now dropped 18 per cent today to 6.5 lira to the dollar, compared with 5.5 lira last night, as a deepening monetary crisis and diplomatic relations with the USA deteriorated.

The central bank raised interest rates to support the lira in an emergency move in May, but it did not tighten at its last meeting. The plunge in the value of the currency coupled with an inflation rate of almost 16% could cause a lot of damage to Turkey's economy.

The currency's drop - 40% so far this year - has become a gauge of fear over a country facing the fallout of years of debt-fuelled growth, global concern over President Recep Tayyip Erdogan's push to amass power, and a souring in relations with allies like the US. Trump said in an early morning post on Twitter.

Erdogan, a self-described "enemy of interest rates", wants cheap credit to fuel growth, but investors fear the economy is overheating.

Transfer: Manchester United make shock move for Diego Godin
But Mourinho's hopes were dashed after he was was told the Uruguayan worldwide has agreed a new deal with Atletico Madrid . He won La Liga with Atletico in 2014 and also won the Copa America with his country in 2011.

Axios reported that the Turkey is trying to lessen their dependence on Russian Federation, and the increased sanctions will make their goal more challenging to reach.

An important emerging market, Turkey borders Iran, Iraq and Syria and has been mostly pro-Western for decades.

The timing of Mr Trump's tweet coincided with an announcement by Turkey's Treasury and Finance Minister Berat Albayrak of the government's new economic policy which is aimed at restoring confidence in the lira.

"Change the euros, the dollars and the gold that you are keeping beneath your pillows into lira at our banks".

Turkey was facing artificial financial volatility, Erdogan said, and people should not pay close attention to foreign exchange prices, and should instead focus on the "big picture".

Everton Complete Signing Of Manchester United Target On Deadline Day
Having previously managed Barcelona and Bayern Munich, Guardiola is used to high expectations. City won the league by 19 points, finishing with record goals and wins in the process.

Like this: