Finance

Turkey's Gold Futures Trading Doubled During the Currency Crisis

Turkey's Gold Futures Trading Doubled During the Currency Crisis

If Brunson is not released, the next escalatory measure by the USA would most likely be targeted sanctions on businesspeople with close ties to President Recep Tayyip Erdoğan. "We have Vestel", AP quoted him as saying.

President Donald Trump had previously announced that the United States was doubling steel and aluminium tariffs on Turkey.

"American and European intelligence and counterterrorism officials said on Tuesday that the escalating tensions between President Trump and President Recep Tayyip Erdogan of Turkey could jeopardize information sharing and law enforcement cooperation between the two countries as they fight the Islamic State [Daesh] in Syria", the New York Times reported on Tuesday.

Turkey doubled tariffs on some US imports, including alcohol, cars and tobacco on Wednesday in retaliation for USA moves, while the lira rallied further after the central bank's liquidity moves had the effect of supporting the currency.

The new Turkish tariffs came a day after President Recep Tayyip Erdogan said his country would boycott US electronic goods, singling out Apple's iPhones. Although no further detail on the length and implementation of the boycott was provided, but significantly, the transcript of Erdoğan's speech on the Turkish presidency's website omitted the boycott announcement.

The White House stance appeared to give Turkish authorities little incentive to work for the release of Andrew Brunson, a pastor on trial in Turkey on terrorism charges and whose case Turkish officials have said was a matter for the courts. Turkey, a secular nation, has been a member of North Atlantic Treaty Organisation since the 1950s and has been an important American ally.

Turkish Finance Minister Berat Albayrak, who is Erdogan's son-in-law, and his Qatari counterpart Ali Sharif Al-Emadi were present at the talks in the capital Ankara.

The lira was at 6.49 to the dollar, a gain of 4.5 percent on the day and 7.50 to the euro, well off the record lows of 7.24 to the dollar and 8.12 to the euro seen Monday. Erdogan's government has blamed followers of the cleric Gulen for an unsuccessful 2016 coup, leading to a purge of thousands of people from Turkey's civil service, police, military and media and educational institutions, with many of them jailed.

Vice President Fuat Oktay tweeted that the new tariffs were retaliation for "the deliberate attack of the USA administration on our economy", CNN said.

Turkey is retaliating against the Trump administration's newly imposed sanctions.

Brunson's lawyer, Ismail Cem Halavurt, told CNN on Wednesday that an appeal for Brunson's full release had been rejected.

Peter O'Flanagan, the head of trading at the foreign exchange consultancy Clear Treasury, said: "Restrictions from the Turkish central bank limiting banks' use of swap lines has had the desired effect on the lira". Bar owner Burhan Coban said consumer and distributor prices for American whiskey are the same, for now, despite the currency plunges and the new Turkish tariffs.

Brunson's Evangelical Presbyterian Church describes him as a "teaching elder" who moved to Turkey in 1993 as part of a missionary programme.