Turkish lira drops 14%, hits fresh record low after Trump authorizes doubling metals tariffs on Turk
The Turkish lira added to its steep losses on Friday, hitting a fresh record low, after President Donald Trump authorized the doubling of metals tariffs on Turkey.
The lira traded down 14 percent against the U.S. dollar at 6.26 after Trump made the comment in a tweet.
Trump's tweet came after Turkish President Recep Tayyip Erdogan asked citizens to convert their dollars and other foreign currencies as well as gold holdings to local lira.
"Change the euros, the dollars and the gold that you are keeping beneath your pillows into lira at our banks. This is a domestic and national struggle," Erdogan said, according to an Associated Press translation.
Erdogan said Turkey was facing an "economic war" and noted the country would respond to those countries who had started it.
"We are facing economic attacks today, and we need to defend our country," Erdogan said, according to a translation. "The economic attack against us now is the same as the coup attempt against us. I'm urging our country to increase outputs, to increase exports."
Turkish stocks also fell on Friday as the iShares MSCI Turkey ETF dropped 13.8 percent. The ETF was already down 42.3 percent this year prior to Friday's losses.
The sharp drop in Turkish assets came after a delegation returned from Washington with no apparent progress on the detention of U.S. pastor Andrew Brunson, who is charged with supporting a group blamed for an attempted coup in 2016.
Last month, Trump threatened to slap "large sanctions" on the country if it refuses to free Brunson. The U.S. then announced on Aug. 1 sanctions on Turkey's justice and interior ministers, prohibiting U.S. citizens from doing business with them.
( Source )