Ankara accuses Washington of waging ‘economic war’ as the lira falls further

ANKARA — Turkey has accused the United States of waging “economic war” and failing to respect its legal system over the fate of a US pastor whose 21-month-long detention on terrorism charges has roiled relations between the NATO allies.

Turkish President Tayyip Erdogan’s spokesman said on Wednesday that comments by US President Donald Trump’s national security adviser were proof that the US is targeting Turkey’s economy and not reflecting the fundamental principles and values of the NATO alliance.

“His statement is proof that the Trump administration is targeting a NATO ally as part of an economic war,” Erdogan spokesman Ibrahim Kalin said in a written statement responding to comments by Trump adviser John Bolton.

“The Trump administration has ... established that it intends to use trade, tariffs and sanctions to start a global trade war,” Kalin said, pointing to similar disputes with Mexico, Canada, Europe and China.

“Turkey has no intention of starting an economic war with any party. It cannot, however, be expected to keep silent in the face of attacks against its economy and judiciary.”

Kalin said Turkey would work with the rest of the world against restrictive and punitive measures.

Bolton said during a visit to Israel that he was skeptical about the pledge of $15 billion of investment support for Turkey by Qatar’s emir, which was “utterly insufficient to have an impact on Turkey’s economy”.

Bolton said the crisis could be over “instantly” if Turkey released Brunson.

The lira weakened further against the dollar on Thursday after Bolton’s comments, including his observation that Turkey had made a “big mistake” in not freeing pastor Andrew Brunson.

The lira has lost 37 percent of its value this year partly because of the dispute with Washington.

Pointed responses

Kalin called on the United States to respect Turkey’s judicial independence, one of Ankara’s most pointed responses yet to criticism over Brunson’s detention.

“There is rule of law in Turkey and the Andrew Brunson case is a legal issue. There is an ongoing legal process related to this individual,” Kalin said.

“It goes without saying that we find unacceptable the disregard of the legal process by the US, which has been making certain demands.”

Brunson, who has lived in Turkey for two decades, is under house arrest over terrorism charges, which he denies.

Brunson’s lawyer said he planned to appeal to the constitutional court for the pastor’s release after being rejected by a lower court last week.

Per Hammarlund, chief emerging markets strategist at SEB banking group, said he thought Brunson would eventually go free, but that the matter likely would continue to add to the lira’s woes.

“Ultimately, they will release Brunson but it will take a while and as long as there is a risk to US dollar flows to Turkish banks or to Turkey in general, then the lira will be under pressure,” Hammarlund said.

“I wouldn’t be surprised if we see another bout of volatility in the lira and a sharp weakening again.”