After the Turkish currency heavy blows had been given by the statements of president Recep Tayyip Erdogan, declined the currency Friday afternoon, a little further tweets from the Us president Donald Trump. Turkey announces retaliation.
Trump announced this afternoon on Twitter that he will be the import duties on steel and aluminium from Turkey will double. Thus, the charges on, respectively, 50 percent and 20 percent. The tweet caused immediate decline of the lira. This achieved the currency to a new low.
Turkey is a retaliation strike for higher import duties on steel and aluminium from Turkey,and argues that the measure of Trump is contrary to the rules of the world trade organization WTO. “As all measures against Turkey will be affected, they will find an answer’, according to the Turkish ministry of Foreign Affairs. “The United States should know that the only result of such sanctions, ( … ), is that our relationship of allies is affected.’
Blow by speech Erdogan
Last weekend was the lira is already a first punch to process when president Erdogan, in a speech spoke of an “economic war” with America. In addition, he called on to foreign currency in exchange for lira.
The Turkish currency was already considerably decreased as a result of the escalating conflict between Turkey and the U.S. regarding the imprisonment of reverend Andrew Brunson. The American is by Turkey accused of espionage and terrorism. To be release to accelerate, enacted the Americans sanctions against Turkey. In addition to this bizarre conflict, the countries also disagree over the war in Syria and ties that Turkey maintains with Russia.
The weak lira brings the Turkish economy in close shoes. The country already suffers under the heavy inflation, that is now in danger. Also the shares of a series of Turkish steel companies were punished after the tweet from Trump. They decreased by nearly 10 percent.
Except for the conflict with the US, there are also concerns about the impact that president Erdogan has on the policy of the Turkish central bank. Erdogan is the opponent of a rate hike, and named recently to his son-in-law Berat Albayrak as minister of Finance. Just for Trumps tweet, he continued his plans for a new economic policy apart. In addition, he emphasised, among other things, the independence of the central bank. In addition, he argues that Turkey needs to save and inflation in check.