Turkey's president: US waging "economic war" against Turkey

President Donald Trump

Carolyn Kaster Associated Press President Donald Trump

Earlier on Friday, Trump ramped up his attack on Turkey by doubling USA tariffs on Turkish aluminium and steel imports to 20 percent and 50 percent, respectively.

As the lira tumbled in value - with no breakthrough in sight in the impasse with the United States, sparked by the jailing of American pastor Andrew Brunson - the government has remained sanguine with few comments aimed at rallying markets.

According to central bank data, Turkey's non-financial companies' foreign currency liabilities now exceed their foreign exchange assets by more than $200bn. If there are euros, take these out.

Turkey wants the U.S. to extradite cleric Fethullah Gulen, a Pennsylvania-based cleric who Turkish authorities say masterminded the coup attempt in which 250 people were killed.

"They say we will not give this or that". Another stumbling block is the human rights issue and the arrest of American pastor Andrew Brunson by the Turkish police.

Without naming countries, Mr Erdogan said supporters of a failed military coup two years ago, which Ankara said was organised by a US-based Muslim cleric, were attacking Turkey in new ways since his re-election two months ago. Regulators told industry executives to study the impact of interest- and exchange-rate shocks, with the findings to be discussed at the meeting, the people said.

The Turkish strongman also said his country's partnership with the United States may be in jeopardy, warning Ankara could start looking for new allies in an op-ed in the New York Times.

"Before it is too late, Washington must give up the misguided notion that our relationship can be asymmetrical and come to terms with the fact that Turkey has alternatives", he said.

He also said it was a pity that Washington chose Brunson over Turkey, its partner in North Atlantic Treaty Organisation, and in an opinion piece in the New York Times, he warned the United States that Ankara had other alternatives as allies. He added, "Our relations with Turkey are not good at this time!".

The Russian economy has for four years been hurt by the effects of sanctions imposed on the country in response to its annexation of Crimea and intervention in Ukraine.

President Recep Tayyip Erdogan urged Turks on Friday to exchange foreign currency for the country's lira, as it continues to fall to the U.S. dollar.

He also said Turkey had alternatives, "from Iran, to Russian Federation, to China and some European countries".

Writing on Twitter, Iran's Foreign Minister Mohammad Javad Zarif also accused Washington of an "addiction to sanctions and bullying". Given the ultra-loose monetary policy in the USA and Europe and the giant asset purchase schemes stemming from United States and eurozone quantitative easing, investors were moved to seek higher returns in Turkey and other emerging markets. "We've stood with neighbours before, and will again now", he warned. (The last substantial hike was in January 2018; before then, it was in late 2013, when Turkey was dealing with the end of the U.S. Federal Reserve's quantitative easing program.) The country could also place controls on capital, but those can hamper private sector activity and won't be easy considering the government's relative inability to totally control private capital.

Concerns over Turkish President Erdogan's tight grip on the countries monetary policy, failed plans to release an American citizen held in Turkey, and shifts in global power prompted the continued plunge of the Turkish economy.

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