Talking Turkey; is the lira the August markets crisis?


He said Sunday the lira's fall was the result of a plot and did not reflect Turkey's economic fundamentals.

On Monday the lira briefly shot past seven to the dollar in early Asian trading, before recovering after Turkey's central bank announced liquidity support measures.

They also called for a boycott of American brands.

He said there are similar cases with Germans imprisoned and he says "it would be desirable to see this matter not only solved at the bilateral level with the USA and Turkey. but it would be good if the Turkish government would resolve it on a more general basis".

Mr Brunson's lawyer Ismail Cem Halavurt on Tuesday appealed again to a Turkish court to release him and lift his travel ban.

Russia's Foreign Minister Sergei Lavrov, who is visiting Ankara, branded the United States sanctions an illegitimate policy at a news conference on Tuesday.

Sergey Lavrov, speaking after talks Tuesday with his Turkish counterpart, Mevlut Cavusoglu, said the wide use of sanctions reflect Washington's desire to win domination and secure unilateral advantages for its businesses.

Additionally, the lira is facing ongoing pressure with geopolitical tensions between the US and Turkey heightening after negotiations over the detention of a USA pastor in Turkey took more steps backward than forward. 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.

Market analysts broadly welcomed his comments but said investors wanted to see action.

Brazilian Ronaldo in intensive care with pneumonia
According to the Diario de Ibiza , he has now been admitted to the ICU of the Nuestra Señora del Rosario Polyclinic . He scored 62 goals in 98 games for Brazil , as well as being a prolific scorer for some of Europe's elite clubs.

While Erdogan didn't address their concerns in his speech, he said Turks have already begun converting foreign exchange into Turkish lira because it would be tantamount to "surrendering" if they did otherwise.

FILE - Andrew Craig Brunson, an evangelical pastor from Black Mountain, North Carolina, arrives at his house in Izmir, Turkey, July 25, 2018.

The embattled Turkish lira tumbled over 16 per cent to new record lows against the dollar as strains with the United States intensified over a number of issues including the detention of a pastor as well as Washington's cooperation with Syrian Kurdish militia force in the fight against Islamic State.

The lira's worst day was Friday, when US President Donald Trump approved the doubling of tariffs on Turkish steel and aluminium, following Turkey's refusal to free a US pastor who has been in detention there for almost two years.

The imprisonment of USA pastor Andrew Brunson has weighed heavily on relations, leading to a series of escalations. Although he was released to home detention, he faces a prison sentence of up to 35 years if he is convicted at the end of his ongoing trial. Erdogan claims that his stance against USA imports is necessary due to the recent collapse in Turkish assets.

"If they can't get their money back, they will cut down on lending to other people", said Fariborz Ghadar, director of Penn State's Center for Global Business studies. "We have Vestel." It was unclear how Erdogan meant to enforce the boycott.

That helped ease tensions in financial markets, with the Turkish lira stabilizing somewhat near record lows.

Despite Erdogan's rhetoric, diplomatic efforts are still under way.