Turkish lira weakens as US warns of more sanctions

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The minister ruled out any move to limit money flows - which is a possibility that worries investors - or any assistance from the International Monetary Fund, NTV said.

Turkey is also one of Qatar's top customers for non-oil exports, according to Qatar Chamber.

Explaining the new tariffs, Turkish Vice-President Fuat Oktay said the rises were ordered "within the framework of reciprocity in retaliation for the conscious attacks on our economy by the U.S. administration".

Finance Minister Berat Albayrak, Erdogan's son-in-law, was due to address hundreds of foreign investors through a tele-conference on Thursday, in an apparent attempt to reassure the markets. In the months preceding the blockade Turkish companies were handling projects worth about $11.6bn in Qatar, most of which is put into FIFA World Cup 2022 projects, according to Qatar Chamber.

The White House said Wednesday that the United States "won't forget" how Turkey treated Andrew Brunson, the detained American pastor, after a court rejected his appeal for release. Gross external debt as of the end of June totalled US$466.7 billion, or more than half of GDP, and nearly 70 per cent of that is owed by the private sector, which had been encouraged to borrow by government loan guarantees.

As for the Turkish economy and its currency, Sanders said, "We're monitoring the situation with respect to the Turkish economy and the decline of the lira, but Turkey's economic problems, those are part of a long-term trend, something of its own making and not the result of any actions the United States has taken".

The U.S. media said the decision was related to the current state of Turkish-American relations and the Brunson case.

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The Turkish lira has strengthened more than 3% today, ahead of a presentation by Finance Minister Berat Albayrak to investors, shrugging off United States comments ruling out the removal of steel tariffs on Turkey even if it frees a United States pastor. Few saw a Bank of England interest rate hike earlier this month as a vote of confidence in the economy, since Britain's future, and access to European markets, remains in doubt.

Mnuchin commented during a White House meeting Thursday at which President Donald Trump said Turkey has "not proven to be a good friend".

It has gained some support from the announcement late on Wednesday of a Qatari pledge to invest US$15 billion in Turkey.

In an intensifying cycle of tensions with the United States, Erdogan has called for a boycott of USA electronic goods such as iPhones and Ankara has sharply hiked tariffs on some U.S. products.

Much of the early action was in currencies with the euro gapping lower as the Turkish lira took another slide to all-time lows around 7.24. Qatar has been downplaying its public support for Turkey - now at loggerheads with Washington - as it attempts to manage its relationship with the United States. Mr Erdogan has also held a phone call with German chancellor Angela Merkel and planned to speak this week also with France's Emmanuel Macron.

Turkish officials say President Recep Tayyip Erdogan has spoken with French President Emmanuel Macron, during which Macron said that Turkey's economic stability is important for France.

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