Istanbul — Turkey’s central bank on Monday sought to calm markets rattled by the plunge of the Turkish lira as President Recep Tayyip Erdogan chastised the US for seeking to stab Ankara "in the back". A dispute between Nato allies Turkey and the US, which reached new intensity over the detention of an American pastor, has hammered the lira and raised questions over the future partnership between Washington and Ankara. As the latest developments caused the lira to plunge further in value, investors fretted over potential economic contagion from Turkey, particularly to European banks. The Turkish lira tumbled 16% against the dollar on Friday as US President Donald Trump said he had doubled tariffs on steel and aluminium from Turkey. "We are together in Nato and then you seek to stab your strategic partner in the back. Can such a thing be accepted?" Erdogan said at a conference. After Erdogan’s speech, the lira was trading back at 6.9 to the dollar, a loss of 7% on the day, recovering ...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.