Dollar hits another 13-month peak over Turkey concerns

Daniel Fowler
August 15, 2018

The first vulnerability to which the International Monetary Fund draws attention is the large amount of Turkey's debt that is USA dollar-denominated and that is subject to valuation risk.

But senior Trump administration officials, in addition to the president, have spent weeks now focusing their demands on the immediate release of Brunson, an American missionary who has served in Turkey for more than two decades.

After travelling to Turkey, Mr Lavrov said: "I am confident that the grave abuse of the role of the U.S. dollar as a global reserve currency will result over time in the weakening and demise of its role". But Sanders, at a Tuesday press briefing, declined to say how the USA government plans to apply more pressure on Ankara, which repeatedly has ignored calls from Trump and others to free Christian pastor Andrew Brunson.

Trump and Erdoğan hammered out a deal for the U.S. to get Israel to release a Turkish woman imprisoned for alleged links to Hamas, and for Turkey to release detained United States pastor Andrew Brunson - or so Trump thought, sources tell The Guardian.

The chargé d'affaires at the US embassy in Turkey, Jeffrey Hovenier, visited Brunson on Tuesday and called for his case - and those of others detained in Turkey - to be resolved "without delay" and in a "fair and transparent manner".

Turkey's lira has lost nearly 40 per cent of its value this year, falling 18 per cent on Friday after President Trump doubled steel and aluminium tariffs and criticised relations between the two countries. The evangelical pastor is on trial for terrorism charges.

President Erdogan has accused the U.S. of trying to "bring Turkey to its knees through threats over a pastor".

"We will boycott USA electronic goods", Erdogan said in a televised speech.

"If they have iPhone, there is Samsung on the other side".

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Nicki continued "And then the ending says 'But when you see us together please don't f**king stare". Not naming any names, she explained, "Well, only one person so far got a little irritated".

'We (also) have our Venus and Vestel, ' he said about homegrown Turkish electronics brands.

Turkish consumer and businesses, increasingly anxious about the future, rein in their spending and investment plans.

The lira -which plummeted to a record low of 7.24 to the dollar at the week's start, rattling global markets-stood little changed at 6.375 after rebounding almost 8 percent overnight.

USA sanctions against Turkey recently sent the country's currency, the lira, into free fall.

In a televised speech earlier, the Turkish President called on citizens to exchange foreign currency and gold for lira, calling it an "economic war".

Turkish President Recep Tayyip Erdogan said Tuesday that his country will ban USA electronics after a diplomatic feud pushed it into a currency crisis. Erdogan accused the United States of conspiring against Turkey and said that the slide in its currency doesn't make any sense logically.

He said Russian President Vladimir Putin and Erdogan had also discussed using national currencies in trade.

Defying US pressures, Ankara now says it is ready to take all necessary measures to ensure financial stability, as lira has been in the free fall since Friday.

Relations between Turkey and the United States have been soured by Brunson's detention, as well as diverging interests on Syria.

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