Emerging economies face threat of Turkey knock-on effect

Turkey Financial Crisis: Stocks at Record Low as Lira Plunges Again

The lira has lost 40 percent against the dollar this year, largely over worries about Turkish President Recep Tayyip Erdogan's influence over the economy, his repeated calls for lower interest rates, and worsening ties with the United States. Ties between the two North Atlantic Treaty Organisation allies have also nosedived over United States support for Syrian Kurdish forces, Ankara's plans to buy a Russian missile system and Turkey's demand that Washington extradite US-based Islamic cleric Fethullah Gulen, whom Erdogan blames for the failed July 2016 coup bid.

President Erdogan told political supporters in Ankara that he would start "a boycott against America's electronic goods".

'If (the United States) have the iPhone, there's Samsung on the other side, ' he said, referring to USA giant Apple's iconic phone and the top South Korean brand.

The call from businesses came as Erdogan demanded a boycott of Apple and other US -made products in an effort to hurt the United States.

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.

The root causes of the current crisis are economic and predate the political conflict between the USA and Turkish governments.

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.

Hamdi Ates, corporate communications director at Turk Telekom, posted a similar message on Twitter.

The crisis came days after US President Donald Trump announced a doubling of steel and aluminium tariffs on Turkey, as Washington pushes Ankara to release Evangelical Christian pastor Andrew Brunson, who is being held on terrorism charges for almost two years.

"And we also have our Venus and Vestel", he said, with regards to Turkey's own domestic brands. Turkey regards the Kurdish fighters as terrorists.

The Turkish currency has lost about 40 percent of its value this year against the USA dollar.

Turkey's economic crisis boils down to heavy reliance on foreign investments made in dollars, while Turkish assets are valued in lira, and the lira has been declining at an alarming rate (although it appeared to stabilize somewhat on Tuesday). Turkey's state-run news agency and US officials say US National Security adviser John Bolton had met with the Turkish ambassador to Washington on Monday.

President Erdogan has accused the USA of trying to "bring Turkey to its knees through threats over a pastor".

Saudi king, crown prince congratulate Pakistan's Imran Khan on victory
Reportedly, several leaders are in the running for the coveted seat, which is second only to the premier in importance. But still the PTI will be heavily dependent on the smaller parties and its government may be virtually at their mercy.

The lira tumbled by 12 percent on Monday, Aug. 13 but recovered to a loss of 7 percent, leading some economists to warn it could trigger the next financial crisis.

In a joint statement issued on Tuesday, the industrialists' group TUSIAD and the Union of Chambers and Commodity Exchanges called on the government to allow the central bank to raise interest rates to help overcome the currency crisis.

The United States was the fourth largest source of imports to Turkey previous year, accounting for $12 billion of imports, according to International Monetary Fund statistics.

Speaking at a press conference with his Turkish counterpart Mevlut Cavusoglu, Lavrov said: "I'm certain that with such abuse, the role of the American dollar as the world reserve currency will weaken and more countries, even not affected by the American sanctions, will get away from dollars".

Mr Erdogan has presided over soaring inflation and borrowing levels, but insists the lira's plight is the result of a "campaign" led by foreign powers.

Chelsea star set to join Serie A giants AC Milan
Sarri told reporters on Friday that he was looking to operate a squad of around 22 players with only a few youngsters. Bakayoko made 43 appearances across all competitions for Chelsea last term. "But I don't know who at the moment".

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