Turkish president says the country will boycott USA electronics

Turkish finance minister to meet foreign investors

Turkish president says the country will boycott USA electronics

"The tariffs that the United States placed on Turkey were out of national security interests, theirs are out of retaliation", she noted, refusing to reveal USA further actions to respond to Ankara's statement.

Trump in his first year in office expressed admiration for Erdogan and even congratulated the Turkish leader after a victory in a controversial referendum, but relations between the two countries have been increasingly fraught.

Mr Erdogan has accused the United States of trying to "bring Turkey to its knees through threats over a pastor".

'If (the United States) have the iPhone, there's Samsung on the other side, ' he said, referring to USA giant Apple's iconic phone and the top South Korean brand.

The two countries have also been in conflict in Syria's war.

President Erdogan is also scheduled to hold a telephone conversation with France's President Emmanuel Macron on Thursday.

An evangelical from North Carolina, he has been held in Turkey for almost two years over alleged links to the outlawed Kurdistan Workers Party and the Gulenist movement, which Turkey blames for a failed coup in 2016.

The United States is seen to be trying to establish "a new generation hegemonic system" in which it could "beat" Russia, China, the EU, Iran and Turkey through attacking their economy and finance institutions with manipulative moves.

The ruckus between Turkey and the U.S. has impacted on other countries' currencies, including the Indian rupee, as investors fear the lira's wobbles could spread to developing nations.

It was also helped by a step from the banking watchdog BDDK, cutting the limit for Turkish banks' forex swap, spot and forward transactions with foreign banks to 25 per cent of a bank's equity. What this does is prevent investors, like hedge funds, from accessing lira liquidity in the offshore swap market.

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Following the announcement, the lira firmed briefly to 5.8699 from 6.04 to the USA dollar, but later eased back to 6.0200 at 1538 GMT.

In London, the FTSE 100 was down 0.4 per cent by Wednesday morning. Investors continued to demand higher interest rates.

Markets weren't all rosy.

Hovenier also noted that the U.S.is demanding the resolution of several other US citizens' cases, including NASA astronaut Serkan Golge, convicted of being a member of a terrorist organization in February "without credible evidence", according to the State Department, and of three Turkish citizens who work for the USA mission and have been detained for months. Bonds fell, pushing the yield on 10-year notes up nine basis points to 21.46 per cent.

The Turkish lira eased slightly but remained below 6.0 against the dollar on Thursday after the United States ruled out removing steel tariffs on Turkey even if Ankara frees a USA pastor, and after Qatar pledged $15 billion in investment to Turkey.

The lira TRYTOM=D3 has lost almost 40 percent against the dollar this year, driven by worries over Erdogan's growing control over the economy and his repeated calls for lower interest rates despite high inflation.

The collapse, which intensified this month and triggered contagion that spread across emerging markets, is making it much more costly for businesses to refinance at least US$16 billion in bonds denominated in foreign currencies that are due by year-end, according to calculations by Bloomberg.

When asked about the impact of the United States spat with Turkey on the country's currency, the spokeswoman said Washington was "monitoring the situation".

Commercial Bank, Qatar's third largest bank by assets, has been deploying more capital and focus on its Turkey business in a bid to benefit from closer political ties between the two countries.

Against this backdrop, the nation's banking regulator said late Tuesday that lenders can now extend maturities on or refinance loans, issue new debt to help troubled companies, and seek new collateral to protect themselves.

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