Erdogan Says Turkey Will Boycott US Electronics

Erdogan Says Turkey Will Boycott US Electronics

Elsewhere, China's offshore yuan weakened 0.1 per cent to 6.9036 yuan per dollar, hovering near a 12-day low of 6.91 per dollar touched on Monday.

"We will impose a boycott on United States electronic products".

Turkey's dispute with the Trump administration over the fate of Brunson has poured fuel on the crisis.

It was boosted after the Turkish banking regulator cut the amount of funds banks can use for currency swap trading, limiting the possibilities for speculating against the lira.

The Turkish currency began to recover after authorities this week took steps to help bank liquidity.

Turkey's already fragile economy went into a tailspin when US President Donald Trump announced that Washington was ramping up aluminium and steel tariffs, the latest salvo in an escalating dispute between the North Atlantic Treaty Organisation allies.

"When the dollar turned in the second quarter we had a really weak EM market", noted Said Haidar, founder and chief investment officer, at NY hedge fund Haidar Capital Management. Turkey's troubles stem from serious tensions with the U.S. as Donald Trump is hitting the country with sanctions demanding the release of a jailed American pastor.

According to economic experts, in the short term, the lira's slide will increase inflation, which will hurt Turkey's poor.

One country's woes are luxury shopper's gain.

Such threats will quickly translate into repression against the Turkish working class, which will face the brunt of the economic crisis and the measures that the Erdogan government will take to confront it.

Mr Erdogan says Turkey is the target of an economic war and has made repeated calls for Turks to sell their dollars and euros to shore up the national currency.

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Brunson's lawyer told Reuters that the appeal could be heard sooner that the usual three to seven days. On Tuesday, Erdogan announced that Turkey would boycott USA electronic goods, singling out iPhones .

How are worldwide markets affected? Then last week, Trump increased them to 50 percent on Turkish steel and 20 percent on Turkish aluminum.

Wall Street and the Turkish currency clawed back ground overnight after a rout that started Friday and saw the unit plunge to record lows.

The currency, the lira, tumbled against the dollar last week when President Trump said he was doubling tariffs on imported Turkish metals to punish Erdogan for refusing to free an American pastor on trial in Turkey.

India's currency has fallen around nine percent this year, amid higher oil prices and a widening trade deficit.

The benchmark 10-year Treasury note yield stood around 2.89 percent, having bounced from a three-week low of 2.848 percent set on Monday.

"It is hard not to see the lira remaining under pressure until we see a material fiscal restraint to cool down the economy, along with a measurable lift in rates by the central bank and a diplomatic resolution to U.S. tensions", said the analyst.

In his conference call, Albayrak did not appear to specify whether the central bank would be assured its independence or hint at whether rates would be allowed to rise. Hovenier has called for the cases against Brunson and others held in Turkey to be resolved "without delay" and in a "fair and transparent manner".

What's expected to happen now?

If the United States failed to change course, he continued, Turkey would "start looking for new friends and allies". "If he [Erdogan] refuses to raise the interest rates, the only thing that can give is the Turkish lira".

He added that the "dollar is basically knee-capping countries", before warning that others could be affected "if they continue to pursue the policies that Erdogan is seeking to pursue".

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