Turkey rejects "impositions" as standoff with USA rattles markets

Britain’s FTSE dips as Turkey’s lira crisis shakes world markets

Turkish currency hit by perfect storm of US sanctions, tariffs & debt, plunges to historic low

On Tuesday Turkey announced a boycott on USA electronics in response.

In this file photo taken on July 11, 2018, US President Donald Trump (L) speaks with Turkey's President Recep Tayyip Erdogan (R) as they arrive for a North Atlantic Treaty Organisation summit at North Atlantic Treaty Organisation headquarters in Brussels.

He again accused the United States of sacrificing Turkey for U.S. pastor Andrew Brunson, sued in Turkey on charges of terrorism. Infuriated by the move, which Washington said was insufficient, Trump sanctioned two Turkish ministers and doubled tariffs on metal imports, adding to lira's slide.

Over the last few days, Turkey has seen a significant devaluation of its currency the lira, which has lost more than 45 percent of its value this year.

It was supported by news of a planned conference call in which the finance minister will seek to reassure investors concerned by Erdogan's control of the economy and his resistance to interest rate hikes to tackle double-digit inflation.

China is at the top of the list.

Albayrak dismissed any suggestions that Turkey might intervene in dollar-denominated bank accounts, saying any seizure or conversion of those deposits into Lira was out of the question.

On Monday, the central bank announced a series of measures to "provide all the liquidity the banks need" - but offered no hint of a rate increase. The freefall has been exacerbated by latest U.S. threat to double tariffs on Turkish steel and aluminum.

Stocks were coming off their worst losses in a month as investors anxious about financial and economic upheaval in Turkey and the possibility it will spread to other countries.

"We have very extensive trade and economic relations, companies are intensively operating on a mutual basis, these are the issues, which are traditionally discussed [by the leaders]", he said.

The two countries are also at odds over their policy in Syria as the US backs the Syrian Democratic Forces (SDF), which is dominated by the People's Protection Forces (YPG), the armed wing of PKK terrorist group's Syrian offshoot the Democratic Union Party (PYD).

But helping Turkey to circumvent the United States sanctions would likely further provoke the USA, which could respond with yet harsher measures against China, Yao added.

On August 13 he accuses the United States of seeking to stab Turkey "in the back".

It pared losses after Albayrak's comments and stood at 7.08 at 2040 GMT on Sunday, Reuters said.

On the brink of a full-blown currency crisis, Turkey's lira plunged to a record low Friday, tumbling as much as 18 percent in its biggest daily drop since 2001.

He has threatened to seek new alliances - a veiled hint at closer ties with Russian Federation - and warned of drastic measures if businesses withdraw foreign currency from banks.

The Turkish strongman also pointed out that Turkey was considering other markets and political alternatives to its "strategic partnership" with Washington.

The reported measures "have evidently had some impact in pulling the lira back higher", said Ray Attrill, head of foreign exchange strategy at National Australia Bank Ltd.in Sydney.

The rand and the ruble have both lost around eight percent against the USA currency over the past week, while Brazil's real slipped four percent, and the Argentinian peso almost six percent.

In March, The Philippines sold 1.46 billion yuan in three-year panda bonds, with a coupon rate of 5 per cent.

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