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Turkish lira trades below 6.0 against the dollar

16 August 2018

Qatar has promised to make a Dollars 15 billion direct investment in Turkey, badly hit by a currency crisis amid a widening diplomatic standoff with the United States, officials said.

The decision came after Qatar's emir, Sheikh Tamim bin Hamad Al Thani, met with Turkish President Recep Tayyip Erdogan in Ankara.

Erdogan has also called on Turks to help defend the country against the U.S. economic war on the nation, appealing to Turkish people to exchange dollars and gold for lira to support the lira.

Lots of countries had been the target of similar USA trade measures, he said, and Turkey would navigate this period with other parties such as Germany, Russia and China. Last week, the US also announced plans to double tariffs on Turkish steel and aluminum. The lira lost almost 40 percent against the dollar this year and suffered a staggering collapse on the heels of Trump's announcement of increased tariffs on metals.

The weakness of the Turkish currency has rippled through global markets.

The currency picked up 6 percent and strengthened briefly at just under 6 to the dollar.

He also said the government expected a more modest growth from the Turkish economy, which expanded 7.4 percent in 2017. While many in the country believe the crisis is the fault of the USA, even though experts have been warning of danger signs in the economy for months, Williams says some Turks do blame authoritarian President Erdogan for the crisis.

"No one has an interest in the economic destabilization of Turkey", Merkel said in Berlin this week.

Facing Turkey's gravest currency crisis since 2001 in his first month in the job, Albayrak has the daunting task of reassuring the investors that the economy is not hostage to political interference.

Turkey will continue talks with the United States if it shows a constructive stance to resolve the diplomatic row, Ibrahim Kalin said, adding that no discussions were planned.

If Brunson is not released, the next escalatory measure by the U.S. would most likely be targeted sanctions on businesspeople with close ties to President Recep Tayyip Erdoğan.

Earlier in the day, the currency had shrugged off USA comments ruling out the removal of steel tariffs on Turkey even if it frees an American pastor who lies at the center of the complex feud between Washington and Ankara.

The court in the western city of Izmir rejected the appeal and ruled that Brunson will remain under house arrest, the state television TRT reported. Brunson's lawyer told Reuters that the appeal could be heard sooner that the usual three to seven days.

Turkish lira trades below 6.0 against the dollar