Turkey's lira crisis puts European economies at risk, says expert

Turkish minister hails Germany’s stance on US sanctions

Investors are anxious not only about Turkey's souring relations with the U.S., a longtime North Atlantic Treaty Organisation ally, but also Erdogan's economic policies and the country's high debt accumulated in foreign currencies.

Brunson, who has been living in Turkey for more than two decades, was accused of helping supporters of Fethullah Gulen, the USA -based cleric who Turkish authorities say masterminded the 2016 coup attempt against President Tayyip Erdogan.

Turkey's strained relationship with the U.S. has reached a low point with the Brunson affair.

As the crisis deepened at the end of last week, the lira (the Turkish dollar) and the Turkish stock market slid sharply.

Erdogan said Turkey was facing an "economic attack" and a "bigger, deeper operation" but showed no sign of making concessions to the United States.

The ministry said Monday it initiated legal investigations against 346 social media accounts "which posted content provoking the dollar exchange rate". On Tuesday Turkey announced a boycott on United States electronics in response.

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

An evangelical from North Carolina, he has been held in Turkey for almost two years over alleged links to the outlawed Kurdistan Workers Party and the Gulenist movement, which Turkey blames for a failed coup in 2016. Erdogan said in the capital, Ankara. The US has refused to extradite Fethullah Gulen, who lives in Pennsylvania.

The opening shots came on August 1, when the US Treasury froze the assets of Turkey's justice and interior ministers in the United States in line with Global Magnitsky Act, under which sanctions have been leveled against human organ traders, arms smugglers and other criminals.

That creates an awkward triangle, given that Turkey is a Nato member, Russian Federation is NATO's number one threat and the organisation is obliged to defend any member that is attacked. Turkey regards the Kurdish fighters as terrorists.

Dramatic pictures as California wildfire gets perilously close to homes
It's burning along with the largest fire in California state history, the Mendocino Complex Fire which is over 302,086 acres. The Smoke Advisory issued on Tuesday morning due to smoke impact from the Holy Fire remains in effect until further notice.

What is happening to the lira?

"We will protect our Turkish lira, we will march with Turkish lira and we will see a stronger lira in the coming period".

That means of the 41.09 million projected smartphone users in Turkey a year ago, 7.15 million of them used Apple, which is only 1.02 percent of the conservative estimate of more than 700 million iPhone users in the world. Meanwhile, inflation has hit 15 percent.

Investors are anxious that Turkish companies that borrowed heavily to profit from a construction boom may struggle to repay loans in dollars and euros, as the weakened lira means there is now more to pay back. The European Central Bank has expressed concern about potential contagion through the eurozone banking system, with Spain, followed by Italy, the most heavily exposed countries.

How much has Turkey's currency dropped? Turkey has an estimated 47 million smartphone users, though iOS penetration in the country is estimated to hover around just 16 per cent.

What are Turkish officials doing about the lira?

The Turkish lira has nosedived over the past week and tumbled another 7 percent on Monday as the central bank's measures failed to restore investor confidence. It also eased rules that govern how they manage their lira and foreign-currency liquidity, while the banking regulator limited swaps transactions to make shorting the currency more hard.

Erdogan, however, did not announce any government action towards a boycott.

But there are fears that Mr Erdogan, who is famously averse to interest rate rises, may be pressuring the central bank not to act.

Turkey's currency crisis sent world markets reeling as investors in emerging markets sought safety in government bonds and the dollar.

Related News:

  • Liverpool vs. West Ham United - Football Match Report

    Liverpool vs. West Ham United - Football Match Report

    Jack Wilshere will be given a personal training plan at West Ham in order to keep him fit and pave the way for an England return. Salah's goal featured an important contribution from new signing Naby Keita , while Guinea's Keita was excellent throughout.
    Meghan's Dad Hung Up While Harry Was Blasting Him

    Meghan's Dad Hung Up While Harry Was Blasting Him

    A family friend claimed Ragland will possibly make the move from Los Angeles as soon as next month in time for her 62nd birthday. Prince Harry later contacted Thomas Markle to ask him if these photos were legitimate. "[He said] it would end in tears".
    Tiger Woods lurking at PGA Championship

    Tiger Woods lurking at PGA Championship

    At Bellerive this evening Tiger Woods may be in contention for his 15th major, Rory McIlroy for his fifth. "I'm exhausted . And then he missed the next from 4 feet for birdie and ended his day with 10 straight pars.
  • Tesla's board seeking more info on Musk's financing plan

    Tesla's board seeking more info on Musk's financing plan

    Investment bankers and Wall Street automotive sector analysts have so far reacted with skepticism saying it would be hard for Mr. Tesla's share price surged after the tweet, rising by as much as 12%, to over $381, before trading closed.
    Tesla forms panel to gauge taking company private

    Tesla forms panel to gauge taking company private

    Musk had said he would consider taking Tesla private if it's shares were valued at $420. Latham and Watkins LLP has been retained by the committee as its legal counsel.
    Intel Core i9-9900K and i7-9700K turbo clocks impress

    Intel Core i9-9900K and i7-9700K turbo clocks impress

    Reportedly, this will be a six-core chip with hyperthreading disabled, but it will bump clockspeeds a touch over the last model. The Intel i9 9900K is an eight-core / sixteen-thread monster set to take on the core dominance from AMD's Ryzen lineup.
  • Trump signs defence bill preventing weapons sales to Turkey

    Trump signs defence bill preventing weapons sales to Turkey

    Cuomo shot back in a statement: " Donald Trump & the NRA - bankrupt bedfellows: literally and morally". Kirsten Gillibrand, who is also thought to have White House ambitions.
    Charlottesville on edge on anniversary of deadly white-nationalist rallies

    Charlottesville on edge on anniversary of deadly white-nationalist rallies

    Last year, 32-year-old Heather Heyer was killed when she was struck by a auto that had plowed into a crowd of counter-protesters. Ralph Northam declared a state of emergency for the state, authorizing the Virginia National Guard to help keep the peace.
    Judge halts mother-daughter deportation, threatens to hold Sessions in contempt

    Judge halts mother-daughter deportation, threatens to hold Sessions in contempt

    Asylum seekers previously had to show that the government in their native country was "unable or unwilling" to protect them. Several coworkers at the factory where Carmen worked had been murdered, and her husband is also abusive, the records state.
  • Turkey says Trump tariff move will harm ties, vows retaliation

    Turkey says Trump tariff move will harm ties, vows retaliation

    The lira hit a record low of 6.24 per dollar on Friday, before recovering to 5.92 - still down a whopping 7 per cent on the day. US President Donald Trump says he has authorised the doubling of steel and aluminium tariffs "with respect to Turkey ".
    Sarri hints that scoreline flattered Chelsea after 3-0 Huddersfield win

    Sarri hints that scoreline flattered Chelsea after 3-0 Huddersfield win

    We hit the bar twice - once when we were 1-0 down after conceding a very unlucky goal from a deflection. I hope in this month to improve the team. 'We only have to carry on like we are doing now with him'.
    As you were in return of Premier League

    As you were in return of Premier League

    The early summer transfer deadline in the Premier League sparked a drop in spending for the first time since 2010. Paul added: "When there is a flow to the game, referees get swept up in the game".


Most liked

US ambassador urges UK to back Trump on Iran nuke deal
In the article, Johnson said the Trump administration is "determined to make sure they [the sanctions] are fully enforced". A British Foreign Office official said Sunday, "We remain committed to the nuclear deal".

Miles Morales Meets His Hero in 'Spider-Man' PS4 Gameplay Launch Trailer
Now a seasoned Super Hero, Peter Parker has been busy keeping crime off the streets as Spider-Man. Marvel's Spider-Man features your favorite web-slinger in a story unlike any before it.

Tiger electrifies Bellerive with final-round 64 at PGA
The lesson is clear: When Woods is absent, the casual fans tune out. "Making that putt at least gave me a chance", Woods said . Woods himself referred to his return to the year's first major at the Masters at Augusta as "a miracle" .

Mechanic takes passenger plane for a 'joyride' before crashing it into island
Airports and airlines conduct background checks , but Stratman said they don't include mental health screenings. The air traffic control staffer called him Rich , but authorities haven't named the man.

Romania: Violent protest leaves 440 needing medical treatment
Podut said: "Almost all of the public sector is malfunctioning, it must be changed completely and replaced with capable people". They sent home just under $5 billion a year ago , a lifeline for rural communities in one of the EU's least developed countries.

West Nile Virus sweeps America: Cases reported from coast to coast
The first mosquitoes to test positive this year for West Nile were found in late May in Glenview and Morton Grove . Philip Armstrong, Medical Entomologist at the Connecticut Agricultural Experiment station, in a statement.

NASA spacecraft hurtles toward the sun
It'll fly just over 6 million km from the surface - protected from the searing temperatures by a revolutionary new heat shield. It also marks ULA's sixth launch in 2018 and the 129 successful launch since the company was formed in December 2006.

Nintendo Switch Online Will Launch in the Second Half of September
Expect to hear more about Nintendo Switch Online soon in the coming weeks, probably first at Gamescom which is 15 days away. Nintendo will reveal how to tell if a game requires a Nintendo Switch Online subscription "at a later date".

Turkey's Erdogan calls on Turks to buy lira for 'national battle'
Do not take a stance saying, "We are bankrupt, we are done, we should guarantee ourselves.' If you do that, that would be wrong". A Turkish delegation visited Washington for talks this week but left with no signs of a breakthrough.

"Samsung Unveils its Latest 6.4" Galaxy Note 9 Flagship Smartphone
Remember when everyone chastised the iPhone X for costing $999? With an extra 512GB SD card, users can expand the storage to 1TB. The new device features a 6.4-inch display and a 4,000mAh battery , which Samsung said is the largest ever in a Galaxy device.

Anderson`s fifer knocks India out for 107 in Lord`s Test
But Kuldeep rarely troubled Bairstow, who cover-drove him for four to complete a 76-ball fifty featuring seven boundaries. What's done is done, though, and India will look for a disciplined bowling performance to get back into the game.

Koepka takes 2-shot lead into final round of PGA Championship
The top eight players in the standings following the conclusion of the PGA on Sunday automatically qualify for the Ryder Cup team. No player in U.S. history has featured in more Ryder Cups than Mickelson, who has played in a total of 45 matches.

Photos Of This Star Golfer’s Girlfriend Going Viral During PGA Championship
Fans have been lining up to watch top golfers like Tiger Woods, Jordan Spieth and Justin Thomas play in the practice rounds. He bulked up because he wanted to get stronger in the legs and core, which could help him ward off injuries.

How to catch the peak of the dazzling 2018 Perseid meteor shower
Steve did not know offhand the time the shower will peak, but said it is best to wait until after 11 p.m.to start looking. Scientists from NASA also said that camping out in the country can triple the amount of visible meteors.

Lombok natural disaster : Days after quake strikes, the injured and stricken await treatment
Aid has began reaching isolated areas of the island as rescuers intensified efforts yesterday to find those buried in the rubble . He told the Jakarta Globe that " residents panicked and ran from their shelters " and " several buildings were further damaged ".