Turkish lira pulls back from record low, action plan awaited

13 August, 2018, 12:26 | Author: Sheila Harris
  • European banks

The Australian sharemarket closed in the red and the dollar hit a fresh 18-month low as the Turkish lira led a rout in emerging market currencies and concerns mounted over European Bank exposure to Turkey. Even if Washington and Ankara can resolve their immediate problems - such as the recent arrest of USA citizens in Turkey - the numerous, and multiplying, issues on which Turkey and the United States now disagree could be their relationship's undoing.

As Turkey's lira crisis deepens, contagion across all emerging markets has widened - dragging in the likes of South Africa's rand, Argentina and Mexico's pesos, Russia's rouble and emerging market stock markets around the globe.

The crisis has been sparked by a series of issues including a faltering economy - the central bank has defied market calls for rate hikes - and tensions with the USA, which has hit Turkey with sanctions over its detention of an American pastor.

Turkey's lira pulled back from a record low of 7.24 to the dollar on Monday after the central bank pledged to provide liquidity and cut reserve requirements for Turkish banks, but its meltdown continued to rattle global markets.

"From Monday morning onwards our institutions will take the necessary steps and will share the announcements with the market", he said, without giving details.

Turkey's Finance Minister Berat Albayrak late Sunday said Ankara was planning to roll out an "action plan" on Monday in response to the crisis.

President Erdogan of Turkey accused the USA last night of plotting to destabilise the country and pledged to search for new worldwide allies and trading partners as relations between the North Atlantic Treaty Organisation allies soured further.

'The aim of the operation is to make Turkey surrender in all areas from finance to politics, ' Erdogan told his party members in the Black Sea city of Trabzon.

Pressured by USA sanctions and a new constitutional order that concentrates power in Erdogan's hands, Turkey's central bank and finance ministry did little more than monitor the worst market beating since the rout that took out much of the country's financial sector in 2001. With God's permission we will overcome this'.

One lucky person could win McDonald's for life in a new contest
To qualify, you have to download the mobile app, and then place and order and pay for it via the app. The card is actually a gold plated phone case that will be awarded to the competition's victor .

On Friday, US President Donald Trump announced to double steel and aluminum tariffs on Turkey, saying relations between Washington and Ankara "not good" as tensions mount between the two countries.

The central bank has over the last few weeks defied calls from markets for rate hikes to combat these problems, raising fears of interference from Erdogan who has repeatedly called for low interest rates.

The Turkish strongman also lashed out at interest rates, denounced them as a "tool of exploitation" which should be kept as low as possible. It also said it would take all necessary measures to maintain financial stability.

Mr Erdogan appeared unworried by the punitive measures imposed by the USA, saying Turkey could turn to other partners and again terming the crisis an "economic war". There were also sharp losses in Taipei, Manila and Jakarta, which dived 3.3 per cent after Indonesia reported on Friday its biggest current account deficit in about four years. "You dare to sacrifice 81-million (in) Turkey for a priest who is linked to terror groups?"

Brunson was arrested in October 2016 on charges of being an American spy and terrorist complicit in the failed coup attempt against Erdogan in the summer of 2016.

President Recep Tayyip Erdogan on Sunday criticised the United States, saying Turkey would say "bye bye" to those, who prefer terrorists to their strategic partner.

Last week, a Turkish delegation went to Washington and met American counterparts but there was no breakthrough.

Speaking hours after Iran, also under United States sanctions, offered Turkey its support, Mr Erdogan told a crowd in the Black Sea city of Trabzon that USA sanctions were part of an "economic war" against the country.

In an op-ed published in New York Times, Erdogan warned Washington not to risk its relations with Ankara, saying otherwise it would look for "new friends and allies". "What happened? Immediately, we have imposed the same sanctions on their ministers", Mr. Erdogan said.

Recommended:

  • How to Watch Sunday Night's Perseid Meteor Shower-Online or In Person

    How to Watch Sunday Night's Perseid Meteor Shower-Online or In Person

    Lucky observers may see the occasional meteor sailing across the sky for several seconds, leaving behind a trail of glowing smoke. They arise when the Earth passes through the debris of Comet 109P/Swift-Tuttle, which was discovered in 1862.
    Grassley: Kavanaugh Confirmation Hearings Scheduled to Start Sept. 4

    Grassley: Kavanaugh Confirmation Hearings Scheduled to Start Sept. 4

    Democrats now argue that Republicans are now trying to hurry a confirmation process shortly before the 2018 midterm elections. Republican President Donald Trump nominated Kavanaugh, 53, on July 9 to replace retiring Justice Anthony Kennedy.
    Brazil's Ronaldo expects to be out of hospital by Monday

    Brazil's Ronaldo expects to be out of hospital by Monday

    During his glittering career Ronaldo won the FIFA World Player of the Year award three times, in 1996, 1997, and 2002. Ronaldo is a frequent visitor to the Balearic party island of Ibiza and owns a property there.
  • Everton sign Kurt Zouma on loan

    Everton sign Kurt Zouma on loan

    The 23-year-old French centre-back temporarily moves to Goodison Park with opportunities limited under new boss Maurizio Sarri. The Frenchman spent the last season on loan with Stoke City , making 37 appearances in all competitions.
    New ‘Ralph Breaks the Internet’ Clip Reveals Gal Gadot as Shank

    New ‘Ralph Breaks the Internet’ Clip Reveals Gal Gadot as Shank

    Gadot provides the voice for Shank, the gritty, leather-clad street-racing star of a video game named " Slaughter Race ". Steve Brule/Dewey Cox is the "face" of a Disney franchise), Jack McBrayer, Jane Lynch, Taraji P.
    Alexis Sanchez: I want to show why Man Utd signed me

    Alexis Sanchez: I want to show why Man Utd signed me

    Pogba who joined the Manchester United setup just four days before the match, never looked like he missed pre-season friendlies. If you are a cricket lover, you might want to follow him.
  • Cristiano Ronaldo scores after just eight minutes in Juventus colours

    Cristiano Ronaldo scores after just eight minutes in Juventus colours

    Ronaldo stunned Real Madrid fans last month when he joined Juventus for an Italian league record sum of €112 million (NZ$194m). Of course, it helps when you see the people like you, the supporters and club like you, the feeling is completely different".
    Chelsea goalkeeper Kepa already vocal presence on pitch - Antonio Rudiger

    Chelsea goalkeeper Kepa already vocal presence on pitch - Antonio Rudiger

    N'Golo Kante opened the scoring with a rare strike before Jorginho doubled the lead from the penalty spot on the brink of half time.
    Emery in spotlight as Arsenal begin new life

    Emery in spotlight as Arsenal begin new life

    Guardiola said of his fellow Spaniard: No advice [from me] - I think he has enough experience to know exactly [what to do]. They don't know it, one day one of them will be a manager and realise what we feel, ' he said.
  • Omarosa says she secretly taped her firing, plays audio

    Omarosa says she secretly taped her firing, plays audio

    Manigault Newman served as special assistant to the president , and was tasked with outreach to the African American community. She'd previously claimed to NPR's "Morning Edition," incorrectly, that her book describes her listening to the tape.
    Kanye releases new track 'XCTY,' seemingly out of the blue

    Kanye releases new track 'XCTY,' seemingly out of the blue

    West, still not answering the Kimmel's question, went on to say, "I was so happy when I saw Jimmy walk out in the Yeezys". West upset people this year by declaring support for Trump , and, separately, suggesting that slavery was "a choice".
    Trump doubles tariffs on Turkish metals

    Trump doubles tariffs on Turkish metals

    On Friday the currency dropped as much as 18 percent at onepoint, the biggest one-day fall since a 2001 financial crisis inTurkey. U.S. stocks fell Friday amid the geopolitical concerns that pushed the Turkish lira to the record low against the dollar.


Popular

Aretha Franklin in ‘gravely ill’ condition
Her mother died before her 10th birthday and not long after, Franklin started singing in her first solo shows. According to Showbiz 411 , she's in a " gravely ill " state as those around her are preparing for the worst.

Trump Doubles Tariffs on Turkish Steel, Aluminum Imports
Turkey's currency fell Friday after its economy was rattled by the United States' move to slap the country with more tariffs . Turkey's currency has nosedived amid concerns about the country's economic policies and its dispute with the US.

Barcelona fight back to win Spanish Supercup
The victor of the match that will be staged in Tangier, Morocco, will be decided over one leg for the first time. Ousmane Dembele scored a late winning goal with a blistering strike from outside the area.

Trump Praises Mexico, Blasts Canada on Twitter
Adam Austen, a spokesman for 's foreign minister, added: "We're glad and the USA continue to work out their bilateral issues". Trump's tweets referenced efforts to renegotiate the terms of the North American Free trade Agreement , or NAFTA.

Tiger Woods hangs in there at the turn in the PGA Championship
He has not made a putt of longer than 17 feet over three days, and has only made five putts of more than 10 feet all week. Louis Cardinals' backyard was supposed to be for the birds. "They have been unbelievable", Woods said of the fans.

Blade Runner star wanted after 'stealing laptops'
The 58-year-old was most recently seen on the big screen in the long-awaited sequel Blade Runner 2049 . Young worked at the location sometime in the past but was sacked months ago, TMZ reported .

Leicester boss Puel rules out Maguire move to Man United
He played with consistency and good progress, was strong in his defensive aspect and with quality to start with the ball.

Same old City too strong for new look Arsenal
Emery's first challenge begins with a visit from the reigning Premier League champions, Manchester City at the Emirates. The Premier League match between Arsenal and Manchester City will be broadcast live on NBCSN.

Seattle Man Dead After Stealing and Crashing Plane, Investigation Underway
Besides his other duties, he was qualified to tow aircraft, said Gary Beck , Horizon Air's president and chief executive officer. At one point he said that he had hoped he could have a "moment of serenity" in the air but that everything moved by too fast.

Dimitrov edges Tiafoe in tiebreaker to reach quarters
Tsitsipas set up match point with a scorching crosscourt victor before completing the victory in two hours 17 minutes. Maybe if I played Chung it could be a little bit just having the home crowd support. "I would say I played OK".