China backs Turkey to overcome its economic crisis

China backs Turkey to overcome its economic crisis

China backs Turkey to overcome its economic crisis

ISTANBUL-Turkey's battered lira weakened 4 percent on August 17 after a Turkish court rejected an American pastor's appeal for release, drawing a stiff rebuke from President Donald Trump who said the United States would not take his detention "sitting down".

He asked Mnuchin for an update on sanctions punishing Turkey for pastor Andrew Brunson's detention.

This is the third attempt of the lawyer Branson Ismail CEM Halaburda to protest a court verdict about the arrest of the pastor.

Tensions between Turkey and the USA have been on the rise as Trump has pressed for the release of the pastor.

Last week, Trump tweeted that his administration was doubling aluminium and steel tariffs for Turkey, and in response Ankara sharply hiked tariffs on some United States products.

Turkey's trade minister, Ruhsar Pekcan, said her government would respond to any new trade duties.

Secretary of the Treasury Steven Mnuchin said Thursday the United States is prepared to put additional sanctions in place against Turkey if Brunson isn't released.

Brunson was charged with terror offenses by a Turkish court and has been held since October 2016.

Dollar rises to 13-month peak on anxiety over Turkey
Erdogan has remained defiant after Trump doubled tariffs on aluminum and steel imports from Turkey to 20% and 50%, respectively. Unless and until the government takes more stringent actions, they expect the lira to resume its decline in the near future.

While I remain hopeful for the expeditious release of Pastor Andrew, let me be clear that we fully support the President's action in refusing to pay a ransom to Turkey - a North Atlantic Treaty Organisation ally - for the release of an innocent man.

In currency markets, the dollar index .DXY fell 0.1 percent, while the euro EUR= was up 0.27 percent to $1.1374 after closing Wednesday at its lowest point since July 2017.

Amidst the currency's sharp decline, the S&P and Moody's ratings agencies each downgraded Turkey's debt a notch, and S&P projected the country would face a recession next year.

Mr Trump's national security adviser, John Bolton, had issued a blunt warning to Turkish ambassador Serdar Kilic when he met him on Monday at the White House, an administration official said on Thursday. When U.S. rates are higher, investors feel less need to head to emerging markets in search of higher returns. It says the case against Atilla, sentenced to 32 months in prison, was politically motivated.

A plunge by the Turkish lira and concerns over China's economic health hit emerging market currencies this week, boosting the dollar.

Efforts to rally support and bolster domestic markets included a call Thursday between Turkish Finance Minister Berat Albayrak and worldwide investors.

Erdogan has also held talks with the German and French leaders, a sign that Ankara is moving closer to Europe after several years of sharp tensions.

The leader of Turkey's main opposition party said Erdogan was using the standoff over the evangelical pastor as a "pretext", blaming the United States for economic problems and diverting attention from his own alleged mismanagement.

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