ZCZC
BCN-18
TURKEY-POLITICS-ECONOMY-TRADE-FOREX-US
Turkey seeks to soothe markets over tensions with US
ISTANBUL, Aug 16, 2018 (BSS/AFP) – Turkey’s finance minister Berat
Albayrak will seek to soothe the markets about the lira’s dramatic fall in
the wake of escalating tensions with the United States via a conference call
with foreign investors, his ministry announced Thursday.
Some 3,000 investors from the United States, Europe and Asia registered to
join the conference call scheduled for 1300 GMT, the state-run Anadolu news
agency reported.
Albayrak, President Recep Tayyip Erdogan’s son-in-law, was appointed last
month, and faces a tough task in getting the economy in order.
The lira was being traded at 5.7 against the dollar and 6.5 against euro —
after it lost nearly a quarter of its value on Friday and Monday.
The slight rebound comes after the Turkish central bank took a raft of
measures to keep financial stability and ensure Turkish banks have sufficient
liquidity.
However, analysts say such measures are not enough and call for a sharp
hike in interest rates — strongly opposed by Erdogan’s government which sees
economic growth as its top priority.
The tensions between Ankara and Washington have been increased after Turkey
refused to free US pastor Andrew Brunson detained in October 2016 on charges
of terror and espionage and who is currently under house arrest.
US President Donald Trump tweeted last Friday that Washington was doubling
aluminium and steel tariffs for Ankara, a move that sent the lira into
freefall.
In response, Erdogan has called for a boycott of US electronic goods such
as the iPhone and Ankara has sharply hiked tariffs on some US products, in a
move called “regrettable” by the White House.
BSS/AFP/MR/ 1455 hrs