Erdogan says Turkey will boycott U.S. electronics, lira steadies

Erdogan says Turkey is the target of an economic war and has made repeated calls for Turks to sell their dollars and euros to shore up the national currency.

Albayrak, a 40-year-old former company executive with a doctorate in finance, said Turkey would not hesitate to provide support to the banking sector. The banks were capable of managing the volatility, and there had been no major flow of cash out of deposits lately, he added.

The dispute with the United States, focused on a tit-for-tat tariff row and Turkey's detention of Brunson, helped turn the currency's steady decline into meltdown.

Since January, the Turkish lira has lost more than 34 percent of its value against the dollar, pushing up the price of everyday items.

"It definitely would make sense to own Gold now in Turkey given the depreciation of the lira", the precious metals strategist at Mitsubishi Corp U.K. Plc, said.

Turkey announced earlier to slap tariffs on American goods.

Turkey has borrowed much more in foreign currencies than any other country, as a percentage of its economy, and investors question how much authority its central bank has to raise interest rates.

The United States imposed sanctions on two Turkish government ministers over the trial on terrorism charges of U.S. evangelical pastor Andrew Brunson in Turkey, and last week Washington raised tariffs on Turkish metal exports.

According to the Hurriyet Daily, a significant number of importers began to withdraw their short and long-term orders after Turkish President Recep Tayyip Erdogan's appeal to boycott American electronic products on Tuesday.

Image Zoom
Image Zoom

"Turkey's currency has bounced back from record lows after a lifeline from Qatar".

Other videos show a man shooting his iPhone point blank with a handgun, one being burned in a box full of matchsticks and another, circulated online by an Israeli journalist, of a Turkish boy dumping a bottle of Coca-Cola down the toilet - all in solidarity with Erdogan.

"Economists would certainly tell you that what is happening in Turkey goes far beyond the United States' recent policies and imposition of various policies", Nauert told a press briefing.

Presidential spokesman Ibrahim Kalin told reporters Wednesday: "We predict that measures that our institutions will continue to take will result in an even stronger normalization of the Turkish economy". That followed a string of urgent steps Erdogan has taken to protect Turkey's economy, which was already under strain before the latest US tariffs and sanctions were announced.

On Tuesday, Erdogan called for a boycott of US electronics products, and his spokesperson described American policy as goading Turkey into an "economic war". Tariffs were also increased on goods including cosmetics, rice and coal.

Ankara has repeatedly said the case is up to the courts and a Turkish judge moved Brunson from jail to house arrest in July.

President Trump demanded Turkey free Brunson and then followed through with his threat to hit Ankara with sanctions and tariffs when he wasn't released.

Turkey's Vice President Fuat Oktay said on Twitter that the tariffs on certain products were increased "within the framework of the principle of reciprocity in retaliation for the deliberate economic attacks by the United States".

  • Eleanor Harrison