Erdogan says U.S. waging 'economic war' against Turkey

Berat Albayrak will issue a new economic plan today

Erdogan blamed his country's economic downturn on the United States and other nations that he claims are waging "war" against his country.

The Lira has now lost 30 per cent against the USA dollar, since the start of the year.

The day saw the lira plunge as much as 18% at one point, the biggest one-day drop since Turkey's 2001 financial crisis.

Banks have exposure to Turkey saw their stocks slide, as worries over economic chaos continued.

Turkey also warned there would be retaliation against the US' imposition of the tariffs.

In his Twitter message, the USA president noted specifically how the Turkish lira was sliding "rapidly downward against our very strong Dollar".

His chief advisor and spokesperson Ibrahim Kalin pointed out more blatantly that the United States might lose Turkey for good. "Without Turkish cooperation, US goals in Syria, Iran, Russia, and even Europe become more hard". Financial upheaval risks further destabilizing an already volatile region.

"President Erdogan's strengthened powers under the new presidential system have made it increasingly uncertain whether policymakers will be able to act to stabilise the economy", said William Jackson, chief emerging markets economist at Capital Economics in London.

In March, the United States had imposed tariffs of 25 percent on steel and 10 percent on aluminum for imports from a variety of countries. The White House said he had authorized them under asection of US trade law that allows for tariffs on nationalsecurity grounds. "The dollar, the mollar, will not cut our path", said Erdogan, using a figure of speech he repeatedly uses to mock something.

A financial shockwave ripped through Turkey on Friday when its currency nosedived over concerns about the country's economic policies and a deepening row with the US.

He wrote and Washington's unilateral actions against Turkey undermine American interests and force Ankara to search for new allies.

In a separate opinion piece in the pro-government newspaper Daily Sabah, Erdogan's spokesman Ibrahim Kalin said Turkey's efforts to solve the crisis with diplomatic methods had been dismissed by the Trump administration, warning that "the US runs the risk of losing Turkey" as an ally. According to figures from the Turkish Government, for the period of 2002 to October 2017, Turkish direct investments in the United States reached $3.7 billion while US investments in Turkey amounted to $11.1 billion, second only to the Netherlands' 21.6 billion.

"If you have dollars, euros or gold under your pillow, go to banks to exchange them for Turkish lira".

Mr. Erdogan says the coup was orchestrated from the United States, and specifically by a Muslim cleric, Fethullah Gulen, from his self-imposed exile in Pennsylvania.

The 50-year-old American pastor, who has been charged with "committing crimes on behalf of terror groups", was moved out of prison last month and placed under house arrest.

His cause resonates with Trump's Christian conservative supporters, who could be influential as Republicans seek to retain control of Congress in midterm elections in November. Mr. Trump tweeted Friday morning.

Erdogan enjoys the support of many Turks even though rents and food and fuel prices have all surged.

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