Turkey to reduce currency risk for companies, Finance Minister Albayrak says

Share

While still nominally allies, the USA and Turkey's relationship is continuing to fall apart amid new economic penalties in the continued fight over an American pastor detained in Turkey.

Erdogan stressed that any product made by the U.S. could be made even better in Turkey, and that for the time being the country would pivot to using South Korea's Samsung electronics.

Mr Erdogan suggested Turkey would stop procuring US-made iPhones and buy Korean Samsung or Turkish-made Vestel devices instead.

"They do not refrain from using the economy as a weapon against us, as they tried in the areas of diplomacy, military, or efforts for social and political instability", Erdogan said.

Shares in Vestel zoomed up seven percent on the Istanbul stock exchange after Erdogan's remarks.

During his speech, Erdogan singled out the iPhone as a notable American import.

Turkey's lira fell sharply on Friday after U.S. President Donald Trump threatened to double tariffs in retaliation for failing to release pastor Andrew Brunson.

"We as Turkish Airlines are taking our place alongside our state and people", senior vice president for media relations Yahya Ustun tweeted.

Erdogan said Turkey was facing an "economic attack" and a "bigger, deeper operation". "What do you want to do?"

Turkish currency crisis adds to misery of Indian rupee
The fall in Turkish Lira has spread the fears that the economic slump in Turkey could spread to other economies. The Indian rupee on Monday declined to 69.61 per dollar during the day after opening at a record low of 69.47.

Trump's announcement came shortly after Erdogan called on Turks to help defend the country against the US-launched economic war on his nation.

The lira has lost 40 percent against the dollar this year, largely over worries about Turkish President Recep Tayyip Erdogan's influence over the economy, his repeated calls for lower interest rates, and worsening ties with the United States.

The Turkish lira started slipping again after rebounding more than 8% overnight.

White House press secretary Sarah Sanders said the USA had seen "no evidence that Pastor Brunson has done anything wrong". Turkey's Central Bank has stepped in with measures it hopes will reassure Turks and financial markets. The country's finance minister - who is also Mr Erdogan's son-in-law - will seek to reassure around 1000 global investors in a teleconference scheduled for Thursday.

On Tuesday, the lira recovered some ground, trading at 6.3300 to the dollar at 1947 GMT, up some 9% from the previous day's close and having earlier touched 6.2995.

Erdoğan has blamed the crisis on "economic terrorists" in the United States, a North Atlantic Treaty Organisation ally, which he said is waging economic "war" against the country. The Trump administration has been demanding that Turkish authorities free an American pastor who was arrested back in 2016 over charges he tried to overthrow Erdogan's government. Brunson, who faces up to 35 years in jail if found guilty, denies the charges.

Hovenier said Washington expected the release of detained American citizens including Brunson "without delay" and "in a fair and transparent manner".

Turkey's state-run news agency and US officials say US National Security adviser John Bolton had met with the Turkish ambassador to Washington on Monday.

Share