Published: Sat, August 18, 2018
Markets | By Jeffery Armstrong

USA says ready with more sanctions if Turkey does not free pastor

USA says ready with more sanctions if Turkey does not free pastor

In addition to its decision to ramp up tariffs on imports of Turkish steel and aluminium, the Trump administration imposed sanctions on two top officials in Erdogan's cabinet earlier this month as part of its efforts to pressure Ankara into freeing Brunson.

Security remains tight outside the building in Turkey where Brunson is being held. The U.S. government says Brunson is innocent and wants him to come home.

The lira crisis therefore - at the very least - reflects the political and economic turmoil taking place in Turkey. "We are not going to take this sitting down". Its leader lives in Pennsylvania and the USA has rejected calls from Turkey to have him extradited. Emerging market stocks.MSCIEF, which on Wednesday had fallen more than 20 percent from their January intraday high, edged up 0.0 percent. Rate hikes are needed, because inflation climbed to almost 16% in July, three times the central bank target. "The fundamentals of the Turkish economy are robust and Turkey will emerge stronger from this process", Ibrahim Kalin wrote.

The lira's free-fall was likewise stemmed by the implementation by Turkey's central bank of policies that make it more hard to borrow money.

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"They should have given back a long time ago", Trump said.

USA sanctions and tariffs have contributed to a tumble in the Turkish lira, which dropped in value to 5.86 to the dollar on Friday following Mnuchin's warning. However, it was still down 34 percent in 2018. That makes its decreasing currency even more problematic because businesses will have to spend more in liras to pay back debts that were given in dollars or euros. The U.S. says the pastor is "a victim of unfair and unjust detention."

Turkey on Wednesday doubled tariffs on several US goods, including alcohol and tobacco products and cars, after Trump increased USA tariffs on Turkish aluminum and steel imports to 20 percent and 50 percent, respectively. An infuriated Trump responded by unleashing the sanctions and tariffs.

In recent weeks, the USA has sanctioned a pair of Turkish cabinet members, and dramatically increased tariffs against the nation, fueling anger among Turkish leaders and creating economic uncertainty across the region.

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Brunson, an Evangelical pastor residing in the coastal province of Izmir, is standing trial in Turkey over terrorism charges.

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Brunson is under house arrest after spending almost two years in a Turkish prison under what the Trump administration has said are bogus allegations of aiding terrorists. "I don't know what the breaking point is".

The pledge was announced after the Qatari Emir Sheikh Tamim bin Hamad Al Thani held a private meeting with Turkish President Recep Tayyip Erdogan in Ankara.

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Turkey's economy is in deep trouble, but the broader problem has less to do with Trump's sanctions and tariffs than with Erdogan's economic mismanagement.

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