President Recep Tayyip Erdogan has put up a tough face to US sanctions and is no mood for giving in to pressure which is mounting due to falling Lira. In the on-going war of words, President Erdogan took vow to boycott US-made electronics. The move will thus mean that Turkey will not buy iPhones but choose Korean-make Samsung products instead or Vestel products.
Turkish currency had devalued significantly over the last few days basically due to the on-going dispute with US over the detention of US pastor in Turkey. In last one year, Turkish Lira has fell over 45 percent. The Turkish Central Bank has, however, come to rescue of Lira and announced new measures. Latter helped reverse the downfall to some extent but its effect on the global currencies and stock markets has not been curbed. The worst effect was recorded on Indian rupee which hit a record low. Argentina and South Africa also felt the heat of the downfall of Lira. The current financial turmoil is not the culmination of recent geopolitical issues but has long been pending as Turkey has always refused to increase the interest rates to keep inflation at bay in an overheated economic system.
President Erdogan has totally over-ruled the build-up of terrible economic conditions as the reason behind the fall in Lira but has held US responsible for waging an economic war on the country. He has appealed to the Turks to sell all Euros and Dollars and buy more Liras.
The dispute which stemmed from the issues facing two nations has now got reduced to fight between two Presidents. The comments and attitude of Turkish President will further enrage his US counterpart who may further tighten the screws on Turkey unless otherwise Brunson is released.
Business houses in Turkey have urged the government to implement tighter economic policy to withstand the effect of a potential collapse of currency.