Turkey's president threatens boycott of iPhones, other USA electronics

Turkey's president threatens boycott of iPhones, other USA electronics

Turkey's president threatens boycott of iPhones, other USA electronics

Brunson, who has lived in Turkey for over two decades, is accused of aiding the network of US-based cleric Fethullah Gulen, blamed by Erdogan for masterminding a failed coup in 2016.

The U.S.is an important trading partner of Turkey but it is not the only one; our country has several partners and alternative markets, Pekcan said.

The latest attack on the economy showed that the dollar is no longer a "trustworthy" currency and is instead being used as a tool for political punishment, Finance Minister Berat Albayrak said at a conference in Ankara he as attending alongside Erdogan.

Erdogan admitted the Turkish economy had problems - including a widening current account deficit and inflation of nearly 16 percent but added: "Thanks to God, our economy is functioning like clockwork".

In an effort to defend the lira, Turkey's central bank tightened its rules on currency swaps and other foreign exchange transactions, limiting banks' ability to supply lira to foreign financial companies.

Turkey has traditionally suffered from a large current account deficit. But Turkey has neither, and its economic survival depends on exports, short-term funding, long-term direct investment, and extensive foreign borrowing. A decade of easy money and low interest rates in the United States and European Union following the 2008 financial crisis led to investors searching for higher yields to emerging markets like Turkey. Turkish economy's body is solid. Credit-fueled growth helped the Turkish economy grow and boosted the government's popularity through increased consumption and major construction projects.

Dollar-denominated bonds issued by selected Turkish banks continued to fall on Tuesday, although sovereign bonds steadied.

The pressure on Turkey is reflective of broader trends in emerging markets, although the lira is by far the worst performer. Erdogan claims that his stance against USA imports is necessary due to the recent collapse in Turkish assets.

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US President Donald Trump has slapped hefty tariffs on a swathe of Chinese goods, prompting retaliation from Beijing.

Trump in his first year in office expressed admiration for Erdogan and even congratulated the Turkish leader after a victory in a controversial referendum, but relations between the two countries have been increasingly fraught.

Turkey's weakened currency, the lira, plunged by a full 20 percent in response.

The United States imposed sanctions on two Turkish ministers and doubled customs tariffs on Turkish aluminum and steel imports after Brunson was placed in house arrest.

The dispute between the North Atlantic Treaty Organisation allies - brought to a new intensity by Turkey's holding of an American pastor for two years - has raised questions over the future of their partnership and fanned fears of a looming economic crisis in Turkey.

Interestingly, both Ankara and Washington designate the PKK as "terrorist". The more diplomatic line than Trump's, calling for his "immediate release", was not meant to signal a change in policy, Nauert said Tuesday. During Erdogan's visit to the country, Sudan agreed to hand over the northeastern Suakin island temporarily to Turkey for rebuilding.

After winning a June election, Erdogan spooked markets when he tightened his control over the central bank. "But there will be a price [which] those who're waging an economic warfare against Turkey will also pay".

Erdogan's boycott is reminiscent of the decision by President Vladimir Putin to ban food imports from countries that slapped sanctions on Russian Federation in 2014 over its annexation of Crimea.

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