Erdogan says attempts to exert economic pressure on Turkey futile

Turkey to reveal 'new economic model' on Friday

Turkey to reveal 'new economic model' on Friday

The United States is the biggest destination for Turkish steel exports with 11% of the Turkish export volume.

On Friday, Trump announced that the USA will impose a 20 percent duty on aluminum and 50 percent one on steels as tensions mount between the two North Atlantic Treaty Organisation allies over Ankara's imprisonment of United States pastor Andrew Brunson. The currency has fallen more than 40 per cent this year, fanning worries about a full-blown economic crisis.

The Dow Jones Industrial Average index slid 245 points, or nearly two percent, during early trading hours on Wall Street.

But Erdogan, who had remained unusually silent until now as the lira crisis mounted, urged Turks to take matters into their own hands.

The Turkish lira fell against the USA dollar due to mounting tensions between Turkey and the U.S. in the wake of Ankara's refusal to release American pastor Andrew Brunson who is suspected of being involved with a terrorist group.

"This is a national, domestic battle".

Erdogan's decision to name his son-in-law as finance minister also made people wonder about the direction of the country's economic policy.

Turkey's currency plunged to more than six and a half lira against the dollar, a fall of about 20 percent, overnight and into Friday after a Turkish delegation returned from talks in Washington on Thursday with no apparent solutions to the row.

The United States imposed sanctions on two Turkish officials earlier this month over a detained American pastor who is being tried on espionage and terror-related charges.

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Turkey is now under a 25 percent tariff on imported steel and 10 percent on aluminum, which went into effect in March.

That is spreading fear of an impact on other economies and markets - bank shares across the continent fell and the euro slipped to its lowest since July 2017 as the Financial Times quoted sources as saying the European Central Bank was concerned about European banks' exposure to Turkey.

But Erdogan said Turks should not be alarmed by exchange rate movements.

Turkey's ever combative President Recep Tayyip Erdogan vowed to not bow to economic pressure. A Russian government statement said the two discussed economic and trade ties, including the success of several joint projects.

A man checks foreign currency exchange rates outside a currency exchange shop in an Istanbul's market, Friday, Aug. 10, 2018.

"When it comes to cornering Turkey to extract certain concessions that undermine our sovereign rights, it is a whole another story".

"President Erdogan's strengthened powers under the new presidential system have made it increasingly uncertain whether policymakers will be able to act to stabilise the economy", said William Jackson, chief emerging markets economist at Capital Economics in London. They include BBVA, UniCredit, and BNP Paribas, and the exposure to those lenders is being closely watched, the Financial Times reported.

Mr Erdogan appealed for calm and renewed a call on people to change foreign money into local lira.

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