New US tariffs against WTO rules: Turkish ministry

The ECB bulletin said that since 2013'all countries have seen a clear trend marked by expansion

The ECB bulletin said that since 2013'all countries have seen a clear trend marked by expansion

A widening rift with the United States, its main North Atlantic Treaty Organisation ally, and President Tayyip Erdogan's grip on monetary policy under a new powerful executive presidency have helped to drive the lira down by more than 40 percent this year, a particular vulnerability for Turkish banks as over a third of their lending is in foreign currencies.

He said he had authorized higher tariffs on imports from the United States' NATO ally, imposing duties of 20 percent on aluminum and 50 percent on steel.

The stakes rose sharply Friday morning when President Trump vowed to double metal tariffs on Turkey.

"This innocent man of faith should be released immediately", Trump previously wrote on Twitter when it became clear Turkey would not release the evangelist, who was ordered to be held under house arrest. U.S. President Donald Trump introduced a round of sanctions on August 1, preventing the Turkish justice an interior ministries from doing business with U.S. businesses.

Ankara and Washington have been at odds over the detention of the American evangelical pastor Andrew Brunson on terrorism charges, a matter that Trump has discussed directly with Turkish President Recep Tayyip Erdogan over the phone, The New York Times reported.

It did not disclose details, but suggests Turkey might gravitate further away from its North Atlantic Treaty Organisation allies towards co-operation with Russian Federation, whose relations with the West are at their lowest since the Cold War.

The currency is down 40 percent just this year, shaking worldwide investors' confidence in the country.

"If you have dollars, euros or gold under your pillow, go to banks to exchange them for Turkish lira. It is a national fight", he told a crowd in the northeastern city of Bayburt.

The new US tariffs on Turkey are against the rules set by the World Trade Organization (WTO), the Trade Ministry said on Friday.

"The dollar can not block our path".

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The news didn't help Turkey's fast-depreciating currency, which found a fresh record low on Thursday, falling 4% to 5.49 per USA dollar.

Below is a daily chart of the USA dollar against the Turkish lira spanning a time frame of one year.

The lira tumbled 13% in one day, to 6.51 per USA dollar, a massive move for a currency that will make the Turkish poorer and further shake global investors' confidence in the country.

While Turkey and the United States disagree over a host of issues, the most pressing disagreement has been over Brunson and the detention of other U.S. citizens in Turkey.

On Friday morning, the Turkish lira plunged by over 20% against the USA dollar, into record low territory, extending the currency's spiraling decline of the past several years.

Turkey remains at loggerheads with the U.S. in one of the worst spats between two North Atlantic Treaty Organisation allies in years over the detention of American pastor Andrew Brunson and a host of other issues.

'However, I say it once again from here. Erdogan has been putting pressure on the central bank to not raise interest rates in order to keep fueling economic growth. "Don't heed them", Erdogan said (via CNBC).

"This is a domestic and national struggle", Erdoğan said, according to The Associated Press. Hard currency debt issued by Turkish banks suffered similar falls.

New Finance Minister Berat Albayrak - Erdogan's son-in-law - acknowledged that the central bank's independence was critical for the economy, promising stronger budget discipline and a priority on structural reforms. "On some days, I end the day with a loss".

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