Turkish president says country will boycott iPhones
15 Agosto, 2018, 02:46 | Author: Arnold Perez
The Turkish president has repeatedly been photographed while using Apple products such as iPhones and iPads. On Tuesday, Turkey's President called for a boycott of USA electronics and named the iPhone as one product local residents should shun.
"We will boycott USA electronic goods", Erdogan said in a televised speech, raising the stakes in a spat that has seen the Turkish lira plunge to record lows.
"If [people currently] have iPhone, there is Samsung on the other side", President Recep Erdogan said in a speech at a Symposium in Ankara, the country's capital city.
It is not clear if this will be an official government boycott or just a call to the Turkish public to stop buying American electronics.
The United States imposed sanctions on two Turkish ministers and doubled customs tariffs on Turkish aluminum and steel imports after Brunson was placed in house arrest.
Most economists say Erdogan should raise interest rates to support the Turkish lira, but Erdogan wants to keep rates low to support growth. I would like to say here we will continue to take steps within the rules of the free market.
Erdogan admitted the Turkish economy had problems - including a widening current account deficit and inflation of nearly 16 percent but added: "Thanks to God, our economy is functioning like clockwork". But "thanks to God, our economy is functioning like clockwork", he maintained.
US and global markets fell on Friday and Monday, reflecting concerns that Turkey's problems could spread. In particular, the report flags that Spain's BBVA, Italy's UniCredit and France's BNP Paribas, all of which have significant operations in Turkey, are especially exposed. He said that Russian Federation and Turkey have set a goal to switch to national currencies in mutual trade.
Tourists count their Turkish liras after exchanging foreign currency at a exchange shop in Istanbul, Aug. 13, 2018. The role of construction in the Turkish economy, for example, is comparable to that in Spain or Ireland ahead of the European bust a decade ago, he said.
Instead of authorities addressing structural weaknesses, the government insisted on boosting the Turkish economy by a policy of low interest rates. Here, road paint reads: "Slow down". On Tuesday Turkey announced a boycott on U.S. electronics in response.
The earlier rebound was pinned on local investors attempting to cash in on the lira slide by selling their dollars. Stock markets are feeling the pressure that is likely to affect emerging market economies ...
Meanwhile, one sector has reaped the benefits of the lira's decline as foreign tourists encouraged by the weak currency have flocked once again to Turkish beaches. Washington is demanding that he be fully exonerated and allowed to return to the US. President Recep Tayyip Erdogan has positioned his country as one that is under attack by external forces bent on making the Turkish people bow, a message that has been amplified by a pliant news media that is largely controlled by his allies or riven by fear of deviating from the government's line.
Poor relations between Washington and Ankara have added to Turkey's economic woes, but given broader fundamentals it is only a proximate cause of the market mayhem.
The lira has fallen 42 percent so far this year, with most of the losses happening in the last few weeks. The central bank's action is a "definite signal" that the central bank is tightening monetary policy, said Erkin Isik, a strategist at Turk Ekonomi Bankasi AS.
The president also appointed his son in law and former energy minister BeratAlbayrak as finance minister to head a newly expanded finance ministry, a move that was given an immediate cold shoulder by markets.
Erdogan has not inspired confidence in responding to the lira meltdown. "But there will be a price [which] those who're waging an economic warfare against Turkey will also pay".
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