Turkish senior official warns of perception operation | Turkey

Turkish President Recep Tayyip Erdogan says his country will boycott US -made electronic goods amid a diplomatic spat that has helped trigger a Turkish currency crisis.

The pan-European Stoxx Europe 600 index was down half a percent at 383.84 in late opening deals after declining 1.1 percent on Friday.

"When they fail to make us what they want on the field, they don't hesitate to use the economy as a weapon, just like diplomacy, just like military power, just like social and political instability", Erdoğan said.

The State Department says it respects the election result.

The White House on Monday said USA national security adviser John Bolton met Turkey's ambassador to the United States to discuss the detention of Brunson. Trump has described his detention as a "total disgrace" and urged Erdogan to free him immediately.

If convicted, Brunson, the pastor, faces a prison term of 35 years.

Washington's hostility against Ankara has fueled speculations that it would further push Turkey towards Russian Federation.

Soner Cagaptay, director of Turkish research programme at the Washington Institute, said the confrontation has now become between the leaders of the two countries, particularly over detained American pastor Andrew Brunson.

Ankara has repeatedly said the Brunson case was up to the courts and a Turkish judge moved Brunson from jail to house arrest in July.

"Together with our people, we will stand decisively against the dollar, forex prices, inflation and interest rates".

Donald Trump's administration hit Turkey's justice and interior ministers with sanctions last week.

Investors question whether Erdogan's government can cope with the plunging currency, the diplomatic spat with Washington and other problems.

Stocks were coming off their worst losses in a month as investors anxious about financial and economic upheaval in Turkey and the possibility it will spread to other countries. The identity of the ministers concerned is not clear.

The lira hovered at around 7 lira per dollar on Monday, down almost 10 per cent on the day.

A bigger danger is that Turkey's crisis will spill over into other emerging market economies and there were signs on Monday that other countries seen as vulnerable were coming under speculative attack. "This is a fight between the two presidents now", he said.

Berat Albayrak, Turkey's finance chief - and Erdogan's son-in-law - said Sunday that the government had no plans to seize foreign currency deposits or convert deposits to the Turkish lira.

Erdogan, who gained sweeping new powers following his re-election in June, said rumors had been spread that authorities might impose capital controls in response to the slump in the currency, which tumbled as much as 18 percent on Friday alone.

"Shame on you, shame on you".

"We are together in North Atlantic Treaty Organisation and then you seek to stab your strategic partner in the back".

Altun said a perception operation is going on over those remarks of Erdogan. President Donald Trump's top national security aide warned Turkey's ambassador on Monday that the United States has nothing further to negotiate until a detained American pastor is freed, according to people familiar, signalling a standoff between the countries will continue.

On August 13 he accuses the United States of seeking to stab Turkey "in the back".

  • Zachary Reyes