Archive for the ‘Turkey and NATO’ category

Turkey lira crashes to new lows as market alarm grows

August 10, 2018


© AFP | The lira’s drastic fall has European banks worried

10 August 2018 – 13H20 France 24

Source Link: Turkey lira crashes to new lows as market alarm grows

{Trump drops another economic bomb. – LS}

ISTANBUL (AFP) –

Turkey’s embattled lira on Friday hit new record lows against the US dollar and euro, losing over six percent in value as strains with the United States showed no sign of abating and fears grew over the exposure of European banks.

The lira was trading at 5.90 to the dollar, a loss on the day of 6.5 percent. Earlier, it had crashed some 12 percent through the 6.00 level for the first time in history, trading at one point at more than 6.20 lira per dollar.

The lira has now lost over a third of its value against both the dollar and the euro this year, with the currency battered by both concerns over domestic economic policy and the political situation.

Versus the euro on Friday the lira lost 7.0 percent to trade at 6.8.

Turkey remains at loggerheads with the United States in one of the worst spats between the two NATO allies in years over the detention for the last two years of American pastor Andrew Brunson and a host of other issues.

Talks this week in Washington failed to resolve the impasse which has led both sides to slap sanctions on senior officials amid fears of graver measures to come.

– Doubts over central bank –

Meanwhile, markets are deeply concerned over the direction of economic policy under President Recep Tayyip Erdogan with inflation nearly 16 percent but the central bank reluctant to raise rates in response.

UBS chief economist for EMEA emerging markets Gyorgy Kovacs said a giant rate hike of 350-400 basis points would be “consistent with real rate levels that in the past helped to stabilise the currency.”

He warned a “rate hike alone might not stem the worries about the US and Turkey tensions and a potential further escalation.”

And it remains unclear if the bank would be willing to sharply lift rates with analysts saying the nominally independent institution is under the influence of Erdogan, who wants low rates to keep growth humming.

Erdogan after winning June 24 elections with revamped powers tightened his control over the central bank and appointed his son-in-law Berat Albayrak to head a newly-empowered finance ministry.

“President Erdogan’s strengthened powers under the new presidential system have made it increasingly uncertain whether policymakers will be able to act to stabilise the economy,” said William Jackson, chief emerging markets economist at Capital Economics in London.

He said the lira’s fall was being exacerbated by fears the central bank “isn’t being permitted to raise interest rates”.

– ‘Accelerating speed’ –

Concerns were intensified Friday by a report in the Financial Times that the supervisory wing of the European Central Bank (ECB) had over the last weeks began to look more closely at euro zone lenders’ exposure to Turkey.

The report said that the situation is not yet seen as “critical” but Spain’s BBVA, Italy’s UniCredit and France’s BNP Paribas are regarded as particularly exposed.

“Investors have been looking at the unfolding currency crisis in Turkey as a local difficulty, however the accelerating speed of the declines appears to be raising concerns about European banks exposure to the Turkish banking system,” said Michael Hewson, chief market analyst at CMC Markets UK.

Albayrak, who formerly served as energy minister, is on Friday expected to announce what he has described as a “new economic model” for Turkey but markets remain sceptical.

The president did nothing to reassure markets with comments overnight that the pressure on the lira was due to what he described as a “variety of campaigns” and appearing to play down the magnitude of the crisis.

“If they have dollars, we have our people, we have our right and we have Allah!” he said.

The plunge in the lira has featured remarkably little on Turkish television channels and newspapers — most of which after recent ownership changes are loyal to the government — with most media focusing instead on recent flooding by the Black Sea.

© 2018 AFP

Turkey vows to keep buying Iranian oil: ‘We will not obey’

July 25, 2018

by Joel Gehrke | July 24, 2018 Washington Examiner

Source Link: Turkey vows to keep buying Iranian oil: ‘We will not obey’

{One day, Turkey will need a favor from DJT. Let’s see how that works out. – LS}

Turkey plans to keep purchasing Iranian oil in defiance of American sanctions on the rogue regime, according to the NATO ally’s top diplomat.

“We buy oil from Iran and we purchase it in proper conditions,” Turkish Foreign Minister Mevlut Cavusoglu said Tuesday. “What is the other option?”

Cavusoglu’s comments raise the specter of yet another clash between the U.S. and Turkey, which is also in the final stages of an arms deal with Russia that could trigger American sanctions. Turkish officials, in both cases, have dismissed the U.S.’ threat of sanctions to constrain the choices of other countries.

“While we are explaining why we will not obey these sanctions, we have also expressed that we do not find these U.S. sanctions appropriate,” Cavusoglu said Tuesday.

The Trump administration hopes to isolate Iran and deprive the regime of access to international sources of revenue that might be used to finance a nuclear weapons program or regional aggression by the Iranian Revolutionary Guards Corps and the regime’s terrorist proxies.

“Any time sanctions are put in place, countries have to give up economic activity,” Secretary of State Mike Pompeo said in May. “So the Americans have given up economic activity now for an awfully long time, and I’ll concede there are American companies who would love to do business with the Islamic Republic of Iran … But everyone is going to have to participate in this. Every country is going to have to understand that we cannot continue to create wealth for Qasem Soleimani.”

Turkey has pledged to consummate an agreement to purchase Russian S-400 anti-aircraft defenses, despite strong pushback from NATO allies and U.S. sanctions on the Russian defense industry.

But as Cavosoglu takes a hard line on the oil sanctions, Tupras, Turkey’s biggest oil importer, is cutting back on deals with Iran without eliminating the sales entirely.

“During the sanctions scheme of 2011 by the U.S., Tupras was able to purchase three to four cargoes of Iranian crude a month,” a source told Hurriyet Daily News. “I believe they would want to be able to stick to that this time as well instead of completely stopping. This crude needs to be bought by someone as otherwise it will send the price shooting up, which nobody wants.”

That reduction might render Turkey eligible for a rare waiver from the sanctions. “We are prepared to work with countries that are reducing their imports on a case-by-case basis,” Brian Hook, the State Department director of policy planning, told reporters in early July. “But as with our other sanctions, we are not looking to grant waivers or licenses.”

Still, Cavusoglu’s rhetoric is emblematic of the disagreements that have hampered U.S.-Turkey cooperation in the region of late.

“We need [Turkey’s] behavior to reflect the objectives of NATO, and that’s what we’re diligently working to do: to get them to rejoin NATO, in a way, with their actions, consistent with what we’re trying to achieve in NATO,” Pompeo said during a May congressional hearing. “And not take actions that undermine its efforts.”

Turkey, Russia and Iran leaders to discuss Syria in Istanbul: Turkish source

February 8, 2018

Reuters staff February 8, 2018

Source: Turkey, Russia and Iran leaders to discuss Syria in Istanbul: Turkish source

{Hopefully, they will be discussing a way out of the money pit called Syria.  Must be costing a lot of money, especially with Turkey providing sanctuary for all those refugees from Syria.  Meanwhile, Turkey appears to have formed new alliances at NATO’s expense. – LS}

ANKARA (Reuters) – The leaders of Turkey, Russia and Iran agreed on Wednesday to meet in Istanbul to discuss the conflict in Syria, a Turkish presidential source said.

Turkish President Tayyip Erdogan discussed the meeting in two phone calls on Wednesday with the Russian and Iranian presidents, the source said. The date of the summit would be set in coming weeks.

The three countries have worked together in recent months to try to reduce violence in Syria, even though they have backed rival sides in the nearly seven-year civil war and remain deeply involved in the conflict.

Iran-backed militias and Russian air power have supported a Syrian army offensive in Syria’s northwestern province of Idlib since November, and Turkish forces last month launched an offensive in northern Syria’s Kurdish region of Afrin.

On Monday, Iran urged Turkey to halt the Afrin operation, saying it breached Syrian sovereignty and would increase tension. It was not immediately clear whether Erdogan and Rouhani discussed Afrin in their telephone call on Thursday.

Erdogan and Putin also agreed to speed up the establishment of military observation posts in Syria’s Idlib region under an accord reached by Ankara, Tehran and Moscow last year to reduce fighting between President Bashar al-Assad’s forces and rebels.

After the phone call, the Kremlin said in a statement that Putin and Erdogan agreed to strengthen coordination between the two countries’ military and security services in Syria in the fight against terrorism.

 

Is Turkey Preparing for war with America?

July 25, 2017

Is Turkey Preparing for war with America? The Point (Front Page Magazine, Daniel Greenfield, July 25, 2017

(Please see also, Secretary of State Shills for Muslim Brotherhood, Qatar, which also notes Secretary Tillerson’s affinity for Turkey. — DM)

Those Hillary high fives with Erdogan’s minion really look good now. And Obama’s lectures about how Turkey ought to be a model for moderate Islamic rule even better.

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Turkey is an Islamist Venezuela with money. Its slow transformation into a Sunni Iran complete with terror backing and suppression of domestic dissent, the latest via a fake coup, was aided and abetted by the left-wing diplomatic corps. 

Despite its latest information leaks revealing the presence of US forces to its Jihadist allies, it remains a member of NATO. The question is for how long.

Turkey has made progress in plans to procure an S-400 missile defense system from Russia and signatures have been signed, President Tayyip Erdogan said on Tuesday.

“Steps have been taken and signatures signed with Russia concerning the S-400s. Allah willing we will see the S-400s in our country,” Erdogan told lawmakers from his ruling AK Party at a party meeting in parliament.

That would give Turkey something else in common with Iran.

Why would a NATO member want the S-400? Why, for that matter, does Turkey need it all? Whom is it expecting a possible attack from. Iran wanted Russian air defense systems to ward off an attempt to take out its nuclear weapons program by either America or Israel. Turkey isn’t seriously expecting a strike by Israel. That leaves America or some European countries. The latter is also less likely.

The S-400 won’t integrate into NATO so Turkey isn’t counting on long-term membership. Erdogan may announce a departure from NATO. Even if he doesn’t, he’s making it clear that he views potential enemies as being either in NATO or American allies, whether it’s Israel or America. But the most obvious message here is to the United States. And the message has multiple levels.

Erdogan is telegraphing that he’s going to begin moving Turkey into territory that would involve the risk of an air strike. That will mean an intensification of the current tyranny. It will mean increasing backing for Islamic terrorists. And possibly, WMD programs.

Those Hillary high fives with Erdogan’s minion really look good now. And Obama’s lectures about how Turkey ought to be a model for moderate Islamic rule even better.