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Money Turkish lira plunges further as Trump threatens tariff action

23:25  10 august  2018
23:25  10 august  2018 Source:   msn.com

Turkish lira at record low as Trump doubles tariffs

  Turkish lira at record low as Trump doubles tariffs Turkey's currency slumped to a new record low as Donald Trump compounded the country's economic crisis by doubling steel and aluminium tariffs. The US president revealed the action on Friday as he noted how the Turkish lira "slides rapidly downward" against the "very strong" US dollar.Amid an escalating feud with Ankara, Mr Trump added on Twitter: "Our relations with Turkey are not good at this time!"The day saw the lira plunge as much as 18% at one point, the biggest one-day drop since Turkey's 2001 financial crisis.Now at a new record low, Turkey's currency has lost more than 40% this year.

But as even as he spoke, Mr Trump , whose imposition of sanctions on Turkey last week heightened the lira ’s travails, tweeted that he would take further action . “I have just authorized a doubling of Tariffs on Steel and Aluminum with respect to Turkey as their currency, the Turkish Lira

Turkey ’s lira hit record lows Friday as President Recep Tayip Erdogan urged Turks to sell their foreign currency and US President Donald Trump said he was doubling aluminum and steel tariffs “with respect to Turkey ”. The lira , which has lost a third of its value this year, plunged as low as 14 percent

  Turkish lira plunges further as Trump threatens tariff action © AP Erdogan vows to fight back against ‘economic war’ as government prepares plan

The Turkish lira tumbled 12 per cent against the dollar as President Recep Tayyip Erdogan vowed to fight what he described as an “economic war” and Donald Trump said he would step up action against the country.

Berat Albayrak, Mr Erdogan’s finance minister, sought to respond to the pressure on the currency — which fell to an all-time low beyond TL6 to the dollar on Friday — by announcing that the country would seek to “rebalance” the economy away from its previous focus on growth.

But as even as he spoke, Mr Trump, whose imposition of sanctions on Turkey last week heightened the lira’s travails, tweeted that he would take further action.

Turkish Lira Jumps as Regulator Curbs Bank Swap Transactions

  Turkish Lira Jumps as Regulator Curbs Bank Swap Transactions The Turkish currency rallied after the nation’s banking regulator halved the limit on lenders’s swap transactions, a move that is likely to deter short-selling in the currency.The Banking Regulation and Supervision Agency, or BDDK as it is known in Turkey, cut the limit on lenders’ swap and swap-like transactions to 25 percent of shareholder equity, from 50 percent. That follows a series of steps by Turkish authorities to stem a slide in the currency to a record low on Monday.

Mr. Trump ’s abrupt and unilateral action raised the possibility that he could move similarly to increase tariff I have just authorized a doubling of Tariffs on Steel and Aluminum with respect to Turkey as their currency, the Turkish Lira , slides The lira has plunged against the dollar in recent days, as

Mr Trump said he had authorised a 20% duty on aluminium and 50% on steel. I have just authorized a doubling of Tariffs on Steel and Aluminum with respect to Turkey as their currency, the Turkish Lira , slides rapidly His characteristic defiance in the face of the crisis has further unnerved investors.

“I have just authorized a doubling of Tariffs on Steel and Aluminum with respect to Turkey as their currency, the Turkish Lira, slides rapidly downward against our very strong Dollar!” the US president said. “Aluminum will now be 20% and Steel 50%. Our relations with Turkey are not good at this time!”

  Turkish lira plunges further as Trump threatens tariff action © AP

Despite a partial rally for several hours, the lira was back at TL6.23 to the dollar by the European afternoon — down more than 35 per cent in the year to date.

The fall ricocheted into Turkey’s bond market, sending the yield on the local currency 10-year bond above 20 per cent.

“We won’t lose the economic war,” Mr Erdogan said on Friday, in comments that failed to prevent the lira from slumping afterwards.

“If there is anyone who has dollars, euros or gold under the pillow, he should go and convert this at the bank.”

Turkish Lira Tumbles as Investors Panic

  Turkish Lira Tumbles as Investors Panic Turkey edged closer yet to a full-blown financial meltdown. Ahead of a much-anticipated public address by President Recep Tayyip Erdogan, the lira plunged more than 11 percent to a fresh record, headed for its worst week since 2001. Speaking outside a mosque earlier today, Erdogan told followers “Don’t forget this: if they have got dollars, we have got our people, our right, our Allah,” according to state media.

Turkey ’s unfolding economic crisis has deepened further after Donald Trump announced a doubling of US import tariffs on Turkish steel and aluminium, deepening the country’s currency freefall and rattling financial markets. The Turkish lira plunged by more than 17% against the dollar after the president

U.S. President Donald Trump said he had authorised higher tariffs on imports from Turkey , imposing a 20 percent duty Trump noted on Twitter that the lira "slides rapidly downward against our very strong Dollar!" Shares of European lenders also dropped, hit by concern about their Turkish exposure.

  Turkish lira plunges further as Trump threatens tariff action © FT The lira’s drop came amid increased concerns from the eurozone’s chief financial watchdog about the exposure of some of the currency area’s biggest lenders to Turkey — chiefly BBVA, UniCredit and BNP Paribas.

The onslaught on the currency comes after years in which the economy of the strategically vital Nato state has prospered, partly because of ultra-loose monetary policy in the US and Europe, which encouraged investors to seek higher returns in Turkey and other emerging markets.

Related: Could Turkey's crisis spread to Europe?

  Turkish lira plunges further as Trump threatens tariff action © Getty

But the US and the eurozone are now reining in their monetary policy, and economists have signalled unease at an increase in Turkish companies’ debt. Many governments are alarmed at what they regard as Mr Erdogan’s increasingly arbitrary rule, while markets are nervous about his stewardship of the economy.

“We may have a few days of trouble, but they will be overcome — there is nothing they haven’t tried to bring our country to our knees, Mr Erdogan told a rally in the eastern town of Bayburt. “Our responsibility is to you, not to George or Hans but to Ahmet, Mehmet and Ayse.”

ECB concerns grow over EU banks’ Turkey exposure as lira slides

  ECB concerns grow over EU banks’ Turkey exposure as lira slides Lenders from Spain, France and Italy viewed as vulnerable to weak liraThe Turkish currency has weakened throughout this year — so far, it has lost more than 35 per cent against the dollar in 2018, including a 12 per cent fall on Friday when it hit a new all-time low of TL6.30.

CNBC's Michelle Caruso-Cabrera reports on President Trump doubling tariffs on Turkey as the country undergoes a currency crisis with the Turkish lira .

President Donald Trump abruptly announced Friday that he would double the rate of import tariffs on Turkish metals — forcing Turkey to ask citizens to buy its own crashing currency. As he spoke, the lira fell further — adding to worries about the country's financial stability.

He added: “Even though there is not even the slightest problem in Turkey’s macroeconomic indicators . . . we are exposed to artificial waves of financial instability.”

In an apparent reference to the US’s imposition of sanctions on Ankara last week, he said: “Our relations with those countries that display these attitudes are seeing the point where they cannot be repaired.”

Many investors and analysts argue that the country needs a fundamental change of economic direction.

The lira’s troubles have been heightened by the US’s extraordinary imposition of sanctions on its Nato ally last week, over Turkish authorities’ detention of a evangelical pastor from North Carolina.

Despite a meeting at the US state department this week, Ankara has failed to persuade Washington to lift the measures.

Heather Nauert, state department spokesperson, said the US had made it clear that Andrew Brunson, the pastor, needed to be released. Asked if the two sides had made progress resolving the difficulties in the US-Turkey relationship, she responded: “I would say we would define progress as Pastor Brunson being brought home.”

European stocks gain broadly as Turkey’s lira stabilizes .
European stocks on Tuesday rose on Tuesday, putting the pan-European index on the verge of booking a gain for the first time in the past three sessions as an apparent currency meltdown in Turkey showed signs of steadying.What are markets doing?

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