Aug 10 2018

Erdoğan says Turkey won’t lose economic war

Turkish President Recep Tayyip Erdoğan described a developing currency crisis in the country as part of an economic war and said Turkey wouldn’t lose it.

Erdoğan was speaking to reporters in the town of Bayburt as he left Friday prayers.

Turkey’s lira slumped as much as 13.5 percent earlier in the day to a record low of 6.468 per dollar. It traded down 6.5 percent at 5.91 liras at 2:45 p.m. in Istanbul.

The country is reeling from a slide in the value of the lira amid a political standoff with the United States over the internment of a U.S. pastor and after the central bank failed to intervene to prop up the currency. Analysts fear that the lira’s losses could spark a corporate debt crisis as companies struggle to repay more than $220 billion in foreign loans.

Erdoğan’s comments followed a statement late on Thursday in which he cited Allah and the Turkish people as the defender of his government unidentified people with dollars.