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Two major global ratings agencies lowered Turkey’s ratings Aug. 17, saying they could be upgraded with certain economic improvements.
Emerging markets: who’s taking the biggest hits and why?

Trump trade tariffs and higher borrowing costs are causing problems from Turkey to China

Donald Trump’s trade tariffs are causing tremors in global markets. Emerging economies from Turkey to China are finding it more expensive to export to the US. Investors who put their money in safe havens after the 2012 Greek crisis are nervous again. The FTSE Emerging Index of stocks in the developing world tumbled last week, taking the decline in its value since the beginning of the year to more than 20%.

 

Several Turks have had their share of 15 minutes of fame this week when their videos showing their furious reaction to United States sanctions went viral, as they destroyed dollars and broke their iPhones.
Turkey’s president turns American actions against Turkey to his advantage, appealing to national pride and deflecting responsibility for the lira’s collapse.
Can Turkey rewrite the rulebook for crises in emerging markets?

By rejecting the conventional approach, Erdoğan risks greater trouble – and not just for Turkey

Whether by accident or design, Turkey is trying to rewrite the chapter on crisis management in the emerging-market playbook. Rather than opting for interest-rate hikes and an external funding anchor to support domestic policy adjustments, the government has adopted a mix of less direct and more partial measures – and this at a time when Turkey is in the midst of an escalating tariff tit-for-tat with the US, as well as operating in a more fluid global economy. How all this plays out is important not only for Turkey, but also for other emerging economies that already have had to cope with waves of financial contagion.

 

The lira’s plunge, exacerbated by a dispute with the U.S. over a detained pastor, has exposed growing economic pressures that some economists say could be near a breaking point.
A Turkish court has rejected an appeal for United States Christian pastor Andrew Brunson to be released from house arrest during his trial on terrorism charges.
The İzmir 3rd Heavy Penal Court has rejected the request of release submitted for the US Pastor Brunson, who has been placed under house arrest on charges of “committing crimes in the name of a terrorist organization” and “espionage.”

US threatens more action against Turkey unless pastor freed

The US is demanding that Turkey release a detained US pastor or face further economic measures.

Trump: We’re Cutting Back on Turkey

Referring to Pastor Brunson kept in house arrest, US President Trump has said, “We will pay nothing for the release of an innocent man, but we are cutting back on Turkey”.

Turkish lira weakens after US threatens more sanctions – as it happened

Turkish currency falls 5% at the end of a tumultuous week; European stocks drop after Turkish court rejects US pastor’s appeal for release

The Turkish lira has taken another battering today, falling 5% to 6.1 to the dollar (it lost nearly 7% at one stage) and the Turkish stock market is down 1%.

Albayrak Meets with Foreign Investors: We Have No Plan of IMF

The Minister of Treasury and Finance Berat Albayrak has met with almost four thousand foreign investors via teleconference. Albayrak has said, “We will take every possible step to increase the confidence in the economy of Turkey.”

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