Turkish lira weakens to 5.86, USA warns of more sanctions

Turkish lira weakens to 5.86, USA warns of more sanctions

Turkey and the USA have exchanged new threats of sanctions, keeping alive a diplomatic and financial crisis threatening the economic stability of the North Atlantic Treaty Organisation country. Brunson runs an evangelical church in the Turkish city of Izmir.

Turkey has repeatedly criticized the USA for not condemning the coup attempt two years ago.

Turkey says Brunson has ties to political groups responsible for the 2016 attempted coup of President Recep Tayyip Erdogan.

According to the Middle East Eye, officials in Ankara are willing to concede to USA demands for the freedom of Andrew Brunson, an evangelical preacher accused of playing a role in the attempted coup there in 2016.

Turkish officials visited Washington last week with the idea of seeking leniency for a usa investigation into a Turkish bank, which a source told the Eye fell through, but opened a dialogue. The sanctions were introduced against Turkish high-level officials, to which Ankara responded with retaliatory measures as it froze assets of American justice and interior ministers. Last year, it was reported the Eye received funding from Qatar, though it has denied this.

The 3rd Penal Court in the western province of İzmir rejected the appeal on August 17, ruling for the continuation of Brunson's house arrest, as well as a travel ban imposed on him. "When anyone faces any charges, regardless of the person's citizenship, that person will have to go through the judicial process", he said.

Their weakness stemmed also from falls in their currencies after the Turkish lira plunged this month on concerns about diplomatic rifts between Ankara and Washington. Inflation is at a 14-year high, and looks to be on the brink of a major debt crisis.

Court again rejects US pastor Brunson’s appeal for release
Mr Erdogan earlier wrote in the New York Times that unless the U.S. changed course, Turkey would look for new friends and allies. With his relationship with the US on the rocks, Erdogan has worked to strengthen his alliances in Europe and the Middle East.

Deep concerns remain about the potential for damage to the economy, however.

The Canadian dollar gained against its US counterpart after the country's annual inflation rate accelerated by more than expected, increasing prospects that the Bank of Canada might raise interest rates next month.

The tensions between Washington and Ankara escalated in July after Trump announced the USA will impose sanctions against Turkey as a result of the almost two-year-long detainment of Pastor Andrew Brunson.

Trump, before leaving the White House on Friday, denounced Turkey as a "problem for a long time" and said it made up a "phony" spying charge against Andrew Brunson. Trump added the pastor is a "very innocent man" and "we got somebody out for him - he needed help getting somebody out of some place".

"We have responded to the measures the United States has taken, and will continue to do so based on our worldwide trade law rights and in accordance to World Trade Organization rules", said the minister, Ruhsar Pekcan.

The Trump administration has threatened to levy more sanctions against Turkey, a move that has rattled the nation's financial markets. He was detained in October 2016 and was moved from pretrial detention to house arrest in July. He demanded Brunson's release, saying "they can't take our people".

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