Erdogan Locks Horns With Trump

The Turkish government has promised to announce a “new economic model” today amid fears that the International Monetary Fund would have to be called

The Turkish government has promised to announce a “new economic model” today amid fears that the International Monetary Fund would have to be called

He also branded interest rates as a "tool of exploitation" which should be kept as low as possible.

The Turkish president, Recep Tayyip Erdoğan, has repeated a call on Turks to sell dollars and euros to support the national currency, which has been in freefall over concerns about the economy and deteriorating ties with the US.

The case of Andrew Brunson, an evangelical Christian, is one of a series of disputes that lies at the heart of deteriorating ties between the two North Atlantic Treaty Organisation allies.

Frustrated with his continuing detention, Washington sanctioned two Turkish ministers and then doubled tariffs on Turkish steel and aluminium imports.

"It is wrong to dare bring Turkey to its knees through threats over a pastor", Mr Erdogan told supporters.

"Shame on you, shame on you", he said, directing his remarks at Washington.

"This treatment by America of its strategic partner has annoyed us, it has upset us", Mr Erdogan said.

The White House said the new sanctions would take effect from August 13.

In a second speech, this time in the Black Sea city of Rize, Erdogan ruled out any change in the country's interest rates policy. "Because this is the language they understand", he said.

The nominally independent central bank has defied pressure over the last few weeks to hike interest rates in the face of high inflation and a collapsing currency. "Immediately give these to the banks and convert to Turkish lira and by doing this, we fight this war of independence".

Turkey's banking watchdog BBDK in a statement said it was limiting banks' foreign exchange swap transactions. It was trading at 7.09 against the USA dollar before recovering some of the losses.

The lira's free-fall was the result of a foreign plot and did not reflect Turkey's economic fundamentals, he said.

In an opinion piece published in The New York Times on Friday, Erdogan criticised the tensions with the United States, saying a "failure to reverse this trend of unilateralism and disrespect will require us to start looking for new friends and allies".

It said it would support steel and aluminium exporters on all worldwide platforms, and the U.S. remained an important trade partner.

Turkey's President Recep Tayyip Erdogan on Saturday accused the USA of exchanging its "strategic North Atlantic Treaty Organisation ally with a pastor", remarks that questioned why Washington was seeking to free its citizens detained by Ankara, including Pastor Andrew Brunson who has become the eye of a diplomatic storm between the two nations.

The US responded by slapping sanctions on Turkey and threatening more.

Donald Trump took to Twitter yesterday to boast about the value of the dollar against the lira. In the wake of souring market mood, the US Dollar rallied, as it is often looked to as a safe haven currency due to its highly liquid nature and status as the world's reserve asset.

Erdogan had on Friday held a phone call with Russian President Vladimir Putin to discuss economic and trade issues as well as the Syria crisis.

Turkey has detained Mr Brunson for almost two years, accusing him of links to the outlawed Kurdistan Workers Party and the Gulenist movement, which Turkey blames for a failed coup in 2016. For one, the 2016 detention of an American evangelical pastor named Andrew Brunson, has aggravated tensions.

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