Published: Wed, August 15, 2018
Money | By Hannah Jacobs

Detained Pastor Brunson causing Turkey-U.S. tension files fresh appeal

Detained Pastor Brunson causing Turkey-U.S. tension files fresh appeal

Tariffs have also been increased on goods such as cosmetics, rice and coal.

The lira firmed as far as 5.75 against the dollar on Wednesday and stood at 6.08 at 0943 GMT in a move initially triggered by the Turkish court decision on the Greek soldiers who faced espionage charges.

The Turkish lira hit an all-time low of 7.24 to the dollar on Monday, Aug. 13, driven down by concerns over Erdogan's calls for the central bank to loosen monetary policy, and by deteriorating ties with the United States.

The lira has lost more than two-fifths of its value against the greenback this year, hit by worries over President Tayyip Erdogan's calls for lower interest rates and fraying ties between the United States and Turkey, a North Atlantic Treaty Organisation ally.

The duties were raised in response to the US administration's "deliberate attacks on our economy", Vice President Fuat Oktay wrote on Twitter.

"We will impose a boycott on USA electronic products".

Relations between Washington and Ankara have rapidly soured in recent weeks over Turkey's detention of an American pastor.

Turkey's Vice President Fuat Oktay said in a post on his official Twitter account that the new tariffs came within the framework of the reciprocity principle. But Sanders declined to say how the US government plans to apply more pressure on Ankara, which repeatedly has ignored calls from Trump and others to free Christian pastor Andrew Brunson.

Last Friday, U.S. President Donald Trump said he had authorized higher tariffs on aluminum and steel imports from Turkey.

The chargé d'affaires at the USA embassy in Turkey, Jeffrey Hovenier, visited Brunson on Tuesday and called for his case - and those of others detained in Turkey - to be resolved "without delay" and in a "fair and transparent manner".

Turkey and the U.S. are now experiencing rocky relations following Washington's imposition of sanctions on Interior Minister Suleyman Soylu and Justice Minister Abdulhamit Gul for not releasing Brunson.

Fears over fallout from the Turkish Lira's recent drop lifted the US Dollar Index to its highest level since June a year ago. But world stock traders were dismayed the bank did not raise interest rates, which is what many economists believe is necessary to ease the crisis.

The Turkish central bank has pledged to take "all necessary measures" to stabilize the country's economy to make sure the banks have all the money they need.

The president issued a rallying cry for unity to resist what he has described as an economic war waged by the US.

Turkey has agreed to buy S-400 surface-to-air missiles from Russian Federation, an unprecedented move by a North Atlantic Treaty Organisation member, which has raised objections from members of both parties of the U.S. Congress and the Trump administration.

"It is everyone's observation that the developments in foreign currency exchange have no financial basis and they are an attack on our country", Erdogan said.

Russia's Foreign Minister Sergei Lavrov, who was visiting Ankara, branded the USA sanctions an "illegitimate policy" on Tuesday.

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