Trump squeezes Turkey
Anti-regime rally in Bucharest turns violent
AFINANCIAL shock wave ripped through Turkey on Friday when its currency fell on concerns about its economic policies and a dispute with the US which President Donald Trump stoked further with a promise to double tariffs on the Nato ally.
The lira tumbled 14% in one day, to 6.51 to the dollar, a massive move for a currency that will make the Turkish poorer and further erode international investors’ confidence.
The currency’s drop – 41% so far this year – is a gauge of fear over a country coming to terms with years of high debt, international concern over President Recep Tayyip Erdogan’s push to amass power and souring relations with allies like the US.
The diplomatic dispute with the US was one of the triggers that turned market jitters into a fullblown rout this week.
Turkey has arrested an American pastor and put him on trial for espionage and terror-related charges linked to a failed coup attempt in the country two years ago. The US responded by slapping sanctions on Turkey and threatening more.
The sides held talks in Washington this week, but failed to resolve the spat and Trump took advantage of Turkey’s turmoil on Friday to turn the screws on the country.
Trump tweeted he had authorised the doubling of steel and aluminium tariffs “with respect to Turkey”. The tariffs on aluminum imports would be increased to 20% and those on steel to 50% as the lira “slides rapidly downward our very strong dollar”.
“Our relations with Turkey are not good at this time,” he wrote.
The US is the biggest destination for Turkish steel exports, with 11% of the volume. The lira fell further after Trump’s tweet.
In what appears to be a diplomatic riposte, Turkey later said Erdogan had called Russian president Vladimir Putin to discuss economic ties. It did not disclose details but suggested Turkey might gravitate away from its Nato allies towards co-operation with Russia.
Turkey’s woes have been aggravated by investor worries about the economic policies of Erdogan, who won a new term in office in June with sweeping new powers.
He has been putting pressure on the central bank to not raise interest rates. On Friday, he appealed for calm and called on people to change foreign money into local lira.
“Change the euros, the dollars and the gold that you are keeping beneath your pillows into lira at our banks. This is a domestic and national struggle.”
He appeared to blame foreigners for trying to hurt Turkey, saying: “This will be my people’s response against those waging an economic war against us.”
The defiant tone and war rhetoric only hurt the lira more, before Erdogan’s finance chief, Berat Albayrak, tried to ease investor concerns, saying the government would safeguard the independence of the central bank. – AP/ANA against BUCHAREST: Romanian police yesterday defended their use of force after an anti-government protest turned violent leaving 455 people, including three dozen riot police, needing medical treatment.
Riot police spokesperson Marius Militaru said 70 people, including 11 officers, had been taken to hospital and police were pursuing charges against eight people.
There were no immediate reports of life-threatening injuries, but Militaru said a female colleague had been “brutally beaten” and had a suspected fractured spine.
He said officers were ordered by the Bucharest prefecture – government authorities in charge of the capital – to evacuate Victory Square late on Friday after a protest in front of the government offices that drew tens of thousands demanding the government’s resignation.
Another police spokesperson, Georgian Enache, said “the legitimate state violence” was justified because protesters had been warned several times to leave the square.
Riot police fired tear gas and water cannons to quell protesters. Some individuals threw rocks, bottles and smoke bombs at police. There were accusations that soccer hooligans had infiltrated the largely peaceful protest and committed acts of violence.
Late on Friday, President Klaus Iohannis, a critic of the left-wing government, condemned “the brutal intervention of riot police”.
Three journalists said they were subjected to violence from the police. Austria’s public broadcaster ORF said yesterday a cameraman covering the protest was hit by police with truncheons, while the presenter with him was shoved up against a wall. A journalist filming for a Romanian online news site said he was kicked and shoved by riot police. – AP/ANA