investorschatroom.com

Finance

White House says Turkish sanctions 'regrettable'

Share
Screen Shot 2018 08 17

Secretary of the Treasury Steven Mnuchin said Thursday the United States is prepared to put additional sanctions in place against Turkey if the government of President Recep Tayyip Erdogan does not release American pastor Andrew Brunson, who has been held since 2016.

Brunson, from North Carolina, is under house arrest as his trial on terrorism charges continues.

The Turkish lira has become volatile again at the end of a tumultuous week, after the United States warned of more sanctions against Turkey.

Turkey's lira tumbled as much as 8.5 percent to 6.3 per dollar, having recovered ground rapidly in recent days.

"We have more that we are planning to do if they don't release him quickly", Mnuchin said during a meeting of President Donald Trump's Cabinet. It's not clear how much more they'd be willing to contribute if the U.S. just keeps making things worse.

During the meeting, Trump remarked that Turkey has "not proven to be a good friend".

The flailing Turkish lira rebounded slightly on Thursday, on the heels of Qatar's announcement that it would earmark $15 billion for deposits and investment projects to be made in Turkey.

In response, Erdogan launched a boycott of U.S. electrical products and sharply raised tariffs on other USA imports.

The United States and Turkey have imposed tit-for-tat tariffs in an escalating attempt by Trump to induce Erdogan into giving up the pastor.

Turkey's finance chief: Action plan ready to ease markets
He also branded interest rates as a "tool of exploitation" which should be kept as low as possible. Trump has described his detention as a "total disgrace" and urged Erdogan to free him immediately.

War Of Credibility Over Rick Gates Continues In Paul Manafort Fraud Trial
He also is accused of fraudulently obtaining millions more in bank loans, including while he was working on the Trump campaign. Prosecutors called Morgan Magionos, an Federal Bureau of Investigation forensic accountant, as the next witness to testify.

First woman fined in Denmark for wearing full-face veil
The country's "Burqa Ban" also outlaws other accessories covering the face like balaclavas, masks and false beards. Police are going through surveillance video to determine if the other woman deliberately ripped off the niqab.

US equities rose on hopes that Beijing and Washington may resolve a conflict that has roiled financial markets since early March.

Turkey, in turn, criticized the prosecution in the US of Mehmet Hakan Atilla, a top official at Turkey's state-controlled Halkbank who was convicted of helping Iran avoid USA sanctions.

Erdogan and his French counterpart Emmanuel Macron agreed in a phone call Thursday to foster trade ties, a Turkish presidential source said.

Ratings agency Fitch said the absence of an orthodox monetary policy response to the lira's fall, and the rhetoric of Turkish authorities have "increased the difficulty of restoring economic stability and sustainability".

Meanwhile, Turkish courts have moved to defuse other legal cases that have irritated relations with the EU. Nevertheless, traditional business models are no longer sustainable and high-quality publications, like ours, are being forced to look for new ways to keep going.

Supporters of Brunson, who ran a small church in the Turkish coastal city of Izmir, say allegations that he was linked to Kurdish rebels as well as Turkish cleric and alleged coup plotter Fethullah Gulen are absurd.

He said: "We will pay nothing for the release of an innocent man, but we are cutting back on Turkey!"

The selling has also deepened concerns about the broader economy, particularly Turkey's dependence on energy imports and whether foreign-currency debt poses a risk to banks.

Share