Erdogan vows to defy United States 'threats' after currency crash

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Recep Tayyip Erdogan was responding to a drop in the value of the Turkish currency, the lira, against the USA dollar following the imposition of sanctions and tariffs by the United States in the past two weeks.

A Financial Times report said the European Central Bank was anxious that Turkish citizens would start defaulting on their loans.

Still, he went on to state Turkey acted on its own in the past despite U.S. objections, such as in its invasions of Northern Cyprus in 1974 and Afrin this year in Syrian Kurdistan.

"Our relations with Turkey are not good at this time!" he wrote.

Turkey also warned there would be retaliation against the US' imposition of the tariffs.

"It is making an operation against Turkey ... We will continue increasing our exports", he said.

Turkish President Recep Tayyip Erdogan has said the lira's drop is a "political plot" against Ankara, and his country will begin to seek for new partners. As the currency continued to fall, United States President Donald Trump announced on Friday he had doubled steel and aluminum tariffs on his North Atlantic Treaty Organisation ally before admitting that relations between Washington and Ankara were "not very good".

"The traditional solutions as interest rates' hikes will not tackle this issue", Abu Basha explained, saying that the tLira's plummet has a very deep geopolitical dimension, which caused the Turkish currency to lose about 50% of its value in 2018.

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"We have seen your play and we challenge you", he added, referring to the fluctuation of the Turkish Lira against the dollar.

"As he stated, the president has authorized the preparation of documents to raise tariffs on imports of steel and aluminum from Turkey", White House Deputy Press Secretary Lindsay Walters said. "With God's permission we will overcome this", Erdogan told his party members in the Black Sea city of Trabzon.

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.

President Erdogan urged his people in a counter-tweet: "Change the euros, the dollars and the gold that you are keeping beneath your pillows into lira at our banks".

Turkey and the United States are now experiencing rocky relations following Washington's imposition of sanctions on Interior Minister Suleyman Soylu and Justice Minister Abdulhamit Gul for not releasing American Pastor Andrew Brunson, who faces terrorism charges in Turkey. Gulen denies the allegation.

Last week, a Turkish delegation went to Washington and met with USA counterparts, but there was no breakthrough.

After Mr. Brunson had been in jail for nearly 20 months, a court in July ordered him to be moved to house arrest.

According to the Wall Street Journal, the fall in the TRY in the face of increased USA tariffs on aluminum and steel raises uncertainty for investors in emerging markets.