Turkey tries to contain crisis but currency keeps falling


But Turkey's foreign minister said the USA wouldn't achieve its aims by exerting pressure and imposing sanctions.

Addressing a conference in Ankara gathering Turkish ambassadors, he called on Washington to "remain loyal to ties based on traditional friendship and North Atlantic Treaty Organisation alliance" with Turkey.

The lira hit a record low of 7.23 per dollar late Sunday after Erdogan remained defiant in his economic policies and the standoff against the United States, a North Atlantic Treaty Organisation ally.

"American pastor Andrew Brunson has been held since October 2016 on charges of terror and espionage, and if convicted, could face a jail term of 35 years".

The lira resumed its nosedive after US President Donald Trump said he was doubling tariffs on imports of Turkish aluminium to 20 per cent and steel to 50 per cent.

Cavusoglu said: "We support diplomacy and negotiations but it is not possible for us to accept impositions".

The interior ministry said it had so far identified 346 social media accounts carrying posts about the exchange rate that it said created a negative perception of the economy.

On Friday the slide turned into a crash: the lira dropped as much as 18 percent, hitting US and European stocks as investors took fright over banks' exposure to Turkey.

Multiple institutions announced Monday similar warnings against those responsible for the crisis.

Separately, the Istanbul and Ankara prosecutor's offices launched investigations into individuals suspected of being involved in actions that threaten Turkey's economic security, broadcaster CNN Turk and state news agency Anadolu reported.

The Turkish lira remains under severe pressure on Monday after an intervention by the country's central bank, which Mr Maggio said has developed to be a "branch of the government" in Turkey.

Turkish President Recep Tayyip Erdogan this morning claimed the country was under economic "siege", accusing the USA of trying to "stab it in the back".

Turkish President Recep Tayyip Erdogan on Sunday (Aug 12) slammed the crash of the lira amid a widening spat with the United States as a "political plot" and said his country would instead seek new markets and new allies.

Pakistan on Monday expressed solidarity with Turkey as the country grapples with a currency crisis that saw the lira plunge as much as 20% last week against the United States dollar.

The Turkish currency's slide comes amid rising tensions between the USA and President Recep Tayyip Erdogan over trade. While a stronger Dollar puts the U.S.in a weaker position in the ongoing trade war, investors continue to wonder whether Trump will make another attempt to drag the greenback lower.

Mr Erdogan had on Saturday described interest rates as a "tool of exploitation", in remarks that may not be warmly welcomed by the markets.

The moves are meant to grease the financial system, ease worries about trouble at banks and keep them providing loans to people and businesses.

Turkey's situation is among the most precarious among emerging markets because so much of its growth was fueled with debt in foreign currencies.

This includes an emergency interest rate hike by the central bank, imposing capital controls, fiscal reforms, securing a rescue package by the International Monetary Fund or other lenders and ending the current diplomatic fight with Donald Trump.

The Turkish finance minister says his government has prepared an "action plan" to help ease market worries as the national currency continues to tumble in the face of planned USA sanctions. The lira fell by a fifth against the dollar last week alone, but "even before the current crisis dropping, the lira was the world's worst performing currency, by nearly 50% against the dollar in the past 12 months", The Guardian reports.