Turkish President Erdogan has told people to exchange their gold and dollars for Lira as the currency is headed for a deep plunge as US administration has doubled the tariffs on metal imports. Turkish Lira has been experiencing a fall ever since its ties with US grew from bad to worse. The effects were also obvious on stock markets across Europe as the investor sentiment took a big hit over the exposure of banks to Turkey. The US stocks were also shaken.
Turkish Lira has fell over 40 percent in the current year and is expected to fall further as US tightens its screws over Turkey over the latest dispute about detention of a US pastor. Trump gave his signatures to authorise higher tariffs on imports of aluminium and steel from Turkey. The trade minister of Turkey has stated that the tariffs are in direct violation of the World Trade Organization rules.
President Erdogan stated that the people or countries which has backed a failed military coup organised by a US-based Muslim cleric two years ago were seeking new ways to harm Turkey. President Trump stated that he had allowed tariffs under Section 232 of US trade law under which tariffs were permitted on national security grounds.
The relations between two nations have reached new lows over many issues but the latest detention of a US pastor Andrew Brunson had sparked the flame. The recent tariffs have led to heightened concerns about the to what extent the Turkish companies be able to pay back the entire loans in Euros and Dollars over years of overseas borrowing.