Published: Sat, August 18, 2018
Finance | By Kristine Clayton

More US sanctions for Turkey if they don't obey

More US sanctions for Turkey if they don't obey

Finance Minister Berat Albayrak assured global investors on Thursday that Turkey would emerge stronger from its currency crisis, insisting its banks were healthy and signalling it could ride out the dispute with the United States.

Memories of past emerging market crises, such as the Asian financial crisis of 1997 and Turkey's 2001 crisis, came back to haunt investors this week and prompted a wave of selling across emerging market assets as a whole.

On Friday, Turkish Trade Minister Ruhsar Pekcan warned that Ankara would not succumb to new threats from Washington.

In a tweet later on Thursday, Trump said the United States "will pay nothing" for Brunson's release, "but we are cutting back on Turkey!"

Trump has demanded Brunson's release and has sanctioned Turkish officials and increased tariffs on the country's steel and aluminium in retaliation.

Tamim bin Hamad Al Thani, the Amir of Qatar, tweeted: "Today, in the framework of important negotiations with His Excellency President Erdogan in Ankara, we announced a package of deposits and investment projects worth $15 billion in this country, which has a productive, strong and robust economy".

Turkish Finance Minister Berat Albayrak and his French counterpart Bruno Le Maire spoke by phone on Friday and discussed USA sanctions steps against Turkey, agreeing to act together in response to such moves, the Turkish ministry said.

Andrew Craig Brunson (C), an evangelical pastor from Black Mountain, North Carolina, arrives at his house in Izmir, Turkey, Wednesday, July 25, 2018.

Turkish President Tayyip Erdogan announced yesterday that the country would boycott all electronics from the United States amid tension and rising conflict between the two countries and its leaders.

"They want to hold our wonderful pastor", Trump added.

Christian evangelicals constitute an important part of Trump's political base.

Many countries have been the target of similar U.S. trade measures, Albayrak said, and Turkey would navigate this period with other parties such as Germany, Russia and China. The US has refused to extradite Fethullah Gulen, who lives in Pennsylvania.

Turkey rejected a USA appeal calling for the release of an imprisoned American pastor, but an upper court still needs to rule on that appeal.

"We suspect that there are diminishing marginal returns to additional technical measures so long as they are not accompanied by a fundamentally-oriented policy package".

Russia's Foreign Minister Sergei Lavrov visited Ankara on Tuesday, branding the U.S. sanctions "illegitimate".

It's an awkward triangle, given that Turkey is a Nato member, Russian Federation is Nato's number one threat and the organisation is obliged to defend any member that is attacked.

Erdogan has remained defiant, urging Turks to sell their gold and dollars for lira and describing the crisis as an "economic war".

"Diplomatic negotiations hit speedbumps and that's not unusual in these kinds of situations", said Jay Sekulow, a personal attorney for Trump who is also representing Brunson's family.

Turkey's banking watchdog has taken steps to stabilise the currency, limiting futures transactions for offshore investors and lowering limits on swap transactions.

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