Published: Wed, August 15, 2018
Markets | By Josh Butler

Erdogan says Turkey to 'boycott' U.S. electronic goods

Erdogan says Turkey to 'boycott' U.S. electronic goods

"We will boycott U.S. electronic goods", Erdogan said in a televised speech.

Andrew Brunson has been at the heart of the ongoing fight after the USA sanctioned two top Turkish officials for his continued detention, and Turkey's vow to retaliate, even as its currency plummets.

U.S. sanctions against two Turkish ministers have sent the lira spiralling against the dollar, threatening a debt payment crisis for Turkish banks which have taken out billions in foreign currency loans.

"If (the United States) have the iPhone, there's Samsung on the other side", he said, referring to USA giant Apple's iconic phone and the top South Korean brand. But the latest row with the United States also contributed to the lira's plunge.

The crisis came days after US President Donald Trump announced a doubling of steel and aluminium tariffs on Turkey, as Washington pushes Ankara to release Evangelical Christian pastor Andrew Brunson, who is being held on terrorism charges for almost two years.

The Turkish president has repeatedly been photographed while using Apple products such as iPhones and iPads.

He also made his now famous speech on the night of the July 2016 failed coup calling citizens out into the street through Facetime, an iPhone app.

President Donald Trump announced on Twitter last Friday that he would double the tariffs on steel and aluminum imports from Turkey.

On Monday, Erdogan turned his attention to social media with the announcement that Turkish authorities are investigating 346 accounts that "provoke the currency rate increase", the official news agency Anadolu reported.

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Ronaldo , regarded as one of the world's best-ever players, owns a house in Ibiza and is a regular visitor to the island. Throughout a prosperous career, he scored 62 goals in 98 global appearances for Brazil .

But the USA insists Andrew Brunson, a long-time Turkish resident who ran the tiny Izmir Resurrection Church, is "a victim of unfair and unjust detention".

Turkey's finance minister Berat Albayrak said the central bank would start implementing an economic action plan, including cutting the lira reserve requirement ratio, a cash buffer held by banks.

"Erdogan believes that you need to keep interest rates low to keep the economy growing and going, but also to keep the inflation rate low which really goes against economic thinking", she explained.

US sanctions against Turkey recently sent the country's currency, the lira, into free fall.

US National Security Adviser John Bolton met with the Turkish ambassador to Washington on Monday, suggesting that diplomatic efforts are continuing, according to the AP.

The drop of the Turkish lira is not all bad, Riza from Turkish exporting company Hatipoglu grinningly told FreshPlaza: “We sell our produce for euros and USA dollars, so this drop doesnt really affect us in a negative way.

The lira recovered sharply... They also said Turkey should work to resolve the situation with the United States diplomatically while also improving relations with another major trading partner, the European Union.

On the eve of the 10th anniversary of the Lehman Brothers crisis, one must hope that US policymakers gain the insight to appreciate the real risks that a highly indebted country like Turkey could pose to the USA and global economies.

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