Erdogan says crash of lira 'political plot' against Turkey

Erdogan says crash of lira 'political plot' against Turkey

But Erdogan is also a pragmatist who badly needs a way out of a standoff that threatens his outsized ambitions for the once-thriving Turkish economy. Meanwhile, the Euro fell below 1.14 against the Dollar as investors try to assess the damage Turkey may cause to European banks; the Spanish, French, and Italian in particular have huge exposure to Turkish debt. "You should know that the character of this nation is not one that wavers".

"They are just always behind the curve, always catching up, always too late, and then the damage is done".

"We stood tall before tanks, cannons and planes", said Erdogan, a brash, former footballer and ex-mayor of Istanbul. "We will not give them the time of day..."

The Turkish lira has been hit by concerns over President Recep Tayyip Erdogan's economic policies and a trade and diplomatic dispute with the United States, a North Atlantic Treaty Organisation ally.

"Turkey is faced with an economic siege", Erdogan said Monday, in the latest of a series of speeches. 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. This includes an emergency interest rate hike by the central bank, imposing capital controls, fiscal reforms, securing a rescue package by the International Monetary Fund or other lenders and ending the current diplomatic fight with Donald Trump.

All of this has unnerved the worldwide investors who had helped fuel Turkey's economy and are now pulling their money out.

Erdogan on August 12 warned businesspeople to not "rush to banks to withdraw foreign currency". That reinforces market fears in a self-feeding, vicious cycle.

The diplomatic dispute between the two countries has helped spark an economic crisis in Turkey and push its currency, the lira, to record lows. "The fundamental problem in Turkey has been the build-up of unsustainable economic imbalances".

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Goelman said the move undercuts the FBI's repeated assurances that Strzok would be afforded the normal disciplinary process. The delays were merely the "result of bureaucratic snafus", Strzok's lawyer wrote last month in USA Today.

While some investors said the recent sell-off in emerging markets offered buying opportunities in the strongest economies, others remained cautious, with little to prevent the lira resuming its declines as the government's standoff with the US showed no sign of ending.

ENERGY: Benchmark U.S. crude gained 89 cents to $68.09 per barrel in electronic trading on the New York Mercantile Exchange.

If the market rout continues, Erdogan may have few options but to limit money flows out of the country, a draconian step that can keep the economy from going bust but can pinch its growth for years.

Why is Erdogan mad at the United States?

Additionally, the lira is facing ongoing pressure with geopolitical tensions between the US and Turkey heightening after negotiations over the detention of a USA pastor in Turkey took more steps backward than forward.

Erdoğan has openly stated that Brunson's arrest is an attempt to get the United States to extradite Turkish Islamic cleric Fethullah Gulen, whom he blames with organizing the coup.

Brunson's lawyer Cem Halavurt confirmed to AFP that he appealed for the release of his client once again on Tuesday, saying that: "The court should deliver its ruling in the next three days". He is facing 35 years in a Turkish prison.

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