Turkey will boycott U.S. electronic goods over sanctions, says Erdogan

  • Turkey will boycott U.S. electronic goods over sanctions, says Erdogan

Turkey will boycott U.S. electronic goods over sanctions, says Erdogan

President Recep Tayyip Erdogan vowed to boycott iPhones in a demonstration of defiance as the USA held firm to its demand that Turkey release an evangelical pastor and Turkish executives called for action to bolster the lira. "In our country we have Venus and Vestel", he said, referring to a Turkish-made phone made by electronics manufacturer Vestel.

President Donald Trump has repeatedly called for a weaker USA dollar in a bid to help US exporters, but his recent trade policies, including the imposition of import tariffs on some Turkish goods, have had the opposite effect of strengthening the greenback. It rebounded on Tuesday as Turks sold dollars.

The extent to which the ripples from Turkey's challenges can be felt around the world highlights the potential destructive force to economic and financial stability coming from the combination of a global economic recovery which isn't synchronised and the Trump "trade war on everyone".

"If they have the iPhone, there is Samsung elsewhere".

It's unclear what the USA trying to achieve by targeting an ally with whom it worked together in places including Somalia, Afghanistan and Kosovo.

Erdogan's boycott is reminiscent of the decision by President Vladimir Putin to ban food imports from countries that slapped sanctions on Russian Federation in 2014 over its annexation of Crimea. Aside from the dollar, that includes German and US government bonds, the Japanese yen and Swiss franc.

The data stoked speculation whether the People's Bank of China would intervene with more fiscal stimulus to stem its currency from breaking through the 7-yuan mark.

This week, bankers told Reuters that the Turkish Central Bank would meet "banks' lira liquidity needs at an overnight rate of 19.25 per cent if needed", in what the bankers said could be a first step toward tightening monetary policy.

The lira rallied to 6.53 against the dollar on Tuesday, buoyed perhaps by news of a forthcoming conference call between the Turkish finance minister and about 1,000 investors.

Benchmark 10-year U.S. Treasury notes US10YT=RR last rose 9/32 in price to yield 2.8641 percent, from 2.895 percent late on Tuesday.

The Turkish leader expressed that they were going to produce enough for themselves.

An American evangelical pastor, whose detention in Turkey has already caused an unprecedented deterioration in Ankara-Washington relations, has renewed his appeal to a Turkish court to release him from house arrest and overturn his travel ban.

"What we can do is proved by what we have done so far".

The report says that ASUS has rushed to reduce risk, quickly selling off its local store of products in Turkey in exchange for USA dollars.

The Turkish lira did not suffer the kind of dizzying drops seen in recent days but still experienced some frantic trading when Ankara announced a rise in tariffs for certain United States imports.

A similar plea came from the nation's banks, including the second-largest by assets, Turkiye Garanti Bankasi AS. But, foreign investors are concerned that the central bank may not act because of political interference.

"Something has to be done about interest rates", Ali Fuat Erbil, Turkiye Garanti's chief executive officer, said in an interview aired by NTV. Is there need for that?

In a televised speech earlier, the Turkish President called on citizens to exchange foreign currency and gold for lira, calling it an "economic war".

Worldwide investors are anxious about Turkey's high amount of debt held in foreign currencies, especially the dollar.