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Turkish Economy Under attack by USA sanctions

Recep Tayyip Erdogan
Recep Tayyip Erdogan

Turkish president Recep Tayyip Erdogan has lashed out against US Donald Trump move to magnify and increase tariffs on Turkish steel and aluminum.

On Friday Trump doubled the tariffs on Turkish steel and aluminum in a move which was termed as  “interest rate lobby”  by the Turkish president.

The move is considered dubious and its intended to harm the Turkish economy which is ailing as we  speak now.

Trump announced on his twitter handle as he had instructed the doubling of tariffs on the mentioned Turkish products.

Ever since trump announced the saddening news the Turkish currency Lira has been seen dropping 19% daily against the US dollar.

Turkish president however slammed these tariffs and assured the roaring Turks who had gathered to listen to his motivational speaks, that the us tariffs are out of envy and that turkey will eventually over come these hurdles.

Turkish Lira against US Dollar
Turkish Lira against US Dollar

Erdogan to counter the Lira ailment against the dollar he encouraged the Turks to revive the exchange of gold and dollar into local currency to boost it.

“The dollar cannot block our path,”

He continued again to say,

 

“However, I say it once again from here. If there is anyone who has dollars or gold under their pillows, they should go exchange it for lira’s at our banks. This is a national, domestic battle.”

Erdogan a man known for hating interest rates has failed to convince the European bankers to inject their resources into the Turkish economy, the bankers are skeptical due to the uncertainties surrounding the economy.

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According to Jane Foley, head of Rabobank’s foreign exchange strategy on Turkish economy she said,

“The speculation in the market is that if that Central Bank is to retake credibility, it might need to hike interest rates next month by 5 or 10 percent … which seems very unlikely given that Erdogan is very much against high-interest rates in Turkey,”

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