Turkey says it will help firms hit by turmoil

Turkey says it will help firms hit by turmoil

Turkey says it will help firms hit by turmoil

Despite the political tensions, the lira rebounded some 6 percent on Wednesday, strengthening to around 6.0 to the dollar.

Sanders' statements are particularly significant because, with the crisis in relations between the two North Atlantic Treaty Organisation allies, the White House appears to have taken firm charge over U.S. dealings with Ankara.

"When the dollar turned in the second quarter we had a really weak EM market", Said Haidar, founder and chief investment officer, at NY hedge fund Haidar Capital Management, said.

Turkey and the United States are now at loggerheads over the arrest of USA evangelical pastor Andrew Brunson on terrorism charges in Turkey.

The lira is still down 20 per cent in August and many investors will wait for steep interest-rate hikes from the central bank before they return, especially with inflation at a 15-year high of nearly 16 per cent and climbing.

"Rates have gone up by 10 per cent".

A decree signed by Mr Erdogan doubled Turkish tariffs on United States imports of passenger cars to 120 per cent, alcoholic drinks to 140 per cent and leaf tobacco to 60 per cent. Tariffs were also doubled on goods such as cosmetics, rice and coal.

The trade spat between the United States and Turkey stems from the detention of American pastor Andrew Brunson.

There was a clear, sharp drop in the lira's value on Friday after Trump tweeted he was doubling tariffs on Turkish steel and aluminum, citing a national security threat, and a smaller decline when the US sanctioned Turkey's Interior and Justice Ministers on August 1.

"You now have another huge selloff in EM, which has been exacerbated by Trump's willingness to jam on more and more sanctions when countries are having trouble in the market - like adding to the sanctions on Turkey", Haidar said.

Tariffs were also doubled on goods such as cosmetics, rice and coal.

The lira rebounded some 8 per cent on Tuesday, helped by news of a planned conference call on Thursday in which the finance minister will seek to reassure worldwide investors.

The United States was the fourth largest source of imports to Turkey past year, accounting for $12 billion of imports, according to International Monetary Fund statistics. It follows a string of urgent steps Erdogan has taken to protect its economy from an escalating feud with US counterpart Donald Trump over an American pastor held in Turkey. But the White House does not plan to lift the metals tariffs, which Sanders said were a national security issue.

Brunson's charges include spying for the PKK listed as a terrorist group by both the U.S. and Turkey and the Fetullah Terrorist Organization (FETO).

Sanders said Brunson's release would not lead to an easing in the tariffs, but that it could lead to an easing in sanctions.

The crisis has sent the Turkish currency into free fall since Friday. "These are appeals that require fast decision making because they are related to an individual's freedoms", Brunson's attorney Ismail Cem Halavurt told Reuters.

In the wake of United States sanctions on Turkey, President Recep Tayyip Erdogan reached out to German Chancellor Angela Merkel to point out that it's in Germany's interest for Turkey to have a strong economy.

Erdogan has called on Turks to exchange their dollars for lira in order to shore up the domestic currency.

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