Turkish currency drops to 5.86 lira to the dollar and America warns of new penalties
The Turkish currency fell on Friday, recording 5.86 lira to the dollar after closing on Thursday at 5.8150, with the United States warning Turkey to expect more sanctions unless the release of US pastor Andrew Branson.
The lira fell 35 percent against the dollar this year due to deteriorating relations between the two NATO member states. The losses fueled concerns about the dominance of President Recep Tayyip Erdogan over monetary policy.
"We have more we are planning to do if they do not release him quickly," US Treasury Secretary Stephen Menuchin told a meeting of President Donald Trump's government on Thursday.
Trump later said on Twitter that the United States would "pay nothing" to Turkey for the release of US priest Andrew Branson, who he described as "a great national hostage." "We will not pay anything for the release of an innocent man, but we will suffocate Turkey," he said.
The US comments came after Turkish Finance Minister Bert Berlke assured investors on Thursday that Turkey would emerge from its currency crisis more strongly, stressing that Turkish banks are strong and that his country will overcome its dispute with the United States.
Economists received comments by Erdogan's brother-in-law, Albirq, with a conservative welcome, and the lira held firm after his comments. And rose significantly from a record low of 7.24 pounds to the dollar recorded earlier this week, supported by measures taken by the Central Bank and a country pledge to invest 15 billion dollars in Turkey.
The United States and Turkey have agreed to lift tariffs in the wake of Trump's attempts to persuade Erdogan to release Branson, who denies charges of involvement in the attempted coup in Turkey nearly two years ago.