Turkey Pledges Action To Save Lira

Turkey has vowed to take measures later today to calm market fears sparked by the precipitous plunge in the Lira’s value as its president accused Washington of spearheading an “underhand plot” against his country.

The dispute between the two NATO allies — which reached new intensity over the detention of an American pastor in Turkey — has hammered the Lira and also raised questions over the future partnership between Washington and Ankara.

It caused global market jitters last week as investors fretted over potential economic contagion from Turkey, particularly to European banks.

The already embattled Turkish Lira tumbled some 16 percent against the dollar on Friday as US President Donald Trump said he had doubled steel and aluminium tariffs on Turkey.

Overnight it fell to a new record low of 7.2362 to the dollar before recovering to around 6.8222 in early Asian trading, similar to its trading price on Friday.

In a call with reporters late Sunday Turkey’s finance minister Berat Albayrak said Ankara was planning to roll out an “action plan” on Monday in response to the crisis.

“Our institutions will take necessary action from Monday in order to relieve the markets,” he said, adding that the plan would centre on “the state of our banks and the small and medium size enterprises” most affected by the Lira’s plunge.

Albayrak’s comments came as his father-in-law, President Recep Tayyip Erdogan, said he was in no mood to offer concessions to the United States in one of the worst spats between the two NATO allies in years.

“The aim of the operation is to make Turkey surrender in all areas, from finance to politics,” Erdogan told ruling party members in the Black Sea city of Trabzon.

“We are once again facing a political, underhand plot. With God’s permission we will overcome this,” he added.