How serious is Turkey's lira crisis and what are the implications?

How serious is Turkey's lira crisis and what are the implications?

"We will be taking the necessary steps with our banks and banking watchdog in a speedy manner", he said.

Relations between Washington and Ankara have taken a turn for the worse amid bitter dispute over the detention in Turkey of an American evangelical pastor on terrorism charges.

Turkey on Tuesday announced that it will boycott American electronic devices amid tensions with Washington that have led to a historic Turkish currency crisis.

The currency has lost more than 40 per cent of its value over the past year and fell to an all-time low of 7.24 to the dollar on Monday. And it makes it more expensive for Turkish companies to repay their foreign-denominated debts, raising economic concerns that can further weaken the currency. Erdogan warned that the U.S.is putting decades-old alliances at risk and pushing Turkey to seek allies elsewhere.

On Tuesday, the dollar tumbled more than 5 percent to 6.4591 against the lira after opening the day at 6.8839, and the country's benchmark stock exchange index BIST-100 surged by 1.1 percent.

Erdogan, rejecting economic fundamentals as the cause of lira weakness, said Turkey was the target of an economic war and has made repeated calls on Turks to sell their dollars and euros to shore up the national currency.

President Recep Tayyip Erdogan suggested that Turkey will stick to Samsung and Vestel if United States products are banned.

But in a televised speech on Tuesday, Recep Tayyip Erdogan didn't want to be reminded of that while announcing a move to shun USA electronic goods in the future.

The move comes after the U.S. imposed sanctions on two Turkish ministers over the continued detention of an American pastor on terror-related charges, and President Donald Trump compounded the country's economic crisis by doubling steel and aluminium tariffs to 50% and 20%, respectively.

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The United States slapped financial sanctions on two Turkish ministers and doubled steel and aluminum tariffs on Turkey over his continued detention.

"We will implement a boycott against America's electronic goods", Erdogan told the conference.

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On Monday, Erdogan said that spreading false news about the economy was treason and recent US actions were a stab in the back against Ankara.

Brunson's lawyer, Ismail Cem Halavurt, said the court had up to seven days to decide.

"This is the sign of a clear attack, a challenge", Albayrak said. "I believe the new and important topics will be discussed in this call, otherwise there would not be such an attempt".

The Turkish currency has stabilized near record lows as investors gauge the government's next move to avoid a full-blown financial crisis. Mr Brunson, who faces up to 35 years in jail if found guilty, denies the charges.

Experts have blamed the drop in the lira on fears that Turkey may be falling into an economic crisis.

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