Turkey crisis: Erdogan vows to boycott U.S. electronics

Turkey’s President Recep Tayyip Erdogan is showing no signs of backing down in a standoff with the US that rattled markets. — Reuters pic

He insisted that Turkey's economic dynamic remain strong and said the Turkish currency would soon settle "at the most reasonable level".

Showing no signs of backing down in a standoff with the U.S., Erdogan suggested that Turkey would stop procuring U.S. -made iPhones and buy Korean Samsung or Turkish-made Vestel instead.

Andrew Craig Brunson, an evangelical pastor from Black Mountain, North Carolina, arrives at his house in Izmir, Turkey, July 25, 2018.

The confrontation between Washington and Ankara has largely been attributed by the U.S. corporate media to the failure of the Turkish government to release the USA evangelical Christian preacher Andrew Brunson, whom Ankara has accused of involvement in the abortive 2016 military coup against Erdogan.

As Turkey faces a serious financial meltdown, there are several Taiwanese businesses with a significant presence in the Turkish market, that are taking measures to mitigate expected losses in response to the new sanctions and tense political environment developing in Turkey.

Why are Turkey and the United States at odds? We have Vestel in our own country.

Turkey's floundering economy exacerbated by Trump tariffs
Erdogan has been putting pressure on the central bank to not raise interest rates in order to keep fueling economic growth. Trump's announcement saw the Turkish lira drop even further, crashing to a 19 percent daily loss against the greenback.

In addition, Erdogan also threatened the United States to "start looking for new friend and allies", if the row isn't resolved soon.

North Atlantic Treaty Organisation uses the Incirlik Air Base in Turkey to fight against IS and there has been some domestic pressure on Mr Erdogan to close it.

"We will boycott USA electronic goods", Erdogan said in a televised speech, raising the stakes in a spat that has seen the Turkish lira plunge to record lows. Investment in factories and other fixed assets grew 5.5 percent in the first seven months of the year, down from 5.7 percent in the year to June.

Since January, the Turkish lira has lost more than 34% of its value against the dollar, pushing up the price of everyday items.

European stocks fell in early trade on Monday, with a pan-European index of shares down half a percent and the banking stock index as much as 1.2 percent lower.

Investors are anxious that Turkish companies that borrowed heavily to profit from a construction boom may struggle to repay loans in dollars and euros, since the weakened lira means there is now more to pay back.

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The central bank also lowered reserve requirement ratios for banks, in a move also aimed at staving off any liquidity issues.

The diplomatic dispute has sent shockwaves through financial markets across the world as the plunging lira causing currencies in other developing countries to nosedive.

British travel firm TUI tumbled 3.2 percent and packaging group Mondi lost 2 percent after a fresh slump in Turkey's currency.

What are Turkish officials doing about the lira?

Turkey's central bank has promised to provide banks with liquidity. This has raised concerns over the central bank's independence given the president's repeated statements against raising interest rates.

It was unclear how Erdogan meant to enforce the boycott.

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The plane , a Bombardier Dash 8 - Q400, has the capability to hold about 75 passengers and is used for short travel in the West. PCSD officials also said this is not a terrorist incident. "He was acting alone and he is 29-year-old Pierce county residence".

Much of the Turkish lira's plight may be homegrown, but it shares some key vulnerabilities with other emerging countries whose currencies are now also plunging as fear of contagion spreads, analysts say.

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