How serious is Turkey's crisis?
The move came after Trump reportedly asked relevant government agencies including the State Department to draw up a menu of possible sanctions, Gonul Tol, the executive director of the Middle East Institute's Turkey program told the independent Medyascope TV. "We have not made concessions on justice so far, and we will never make any".
Angered by the continued detention of an American pastor, the USA government imposed sanctions on two Cabinet ministers and threatened more. There is no economic reason ...
"This a plot to force Turkey to surrender in every field from finance to politics, to make Turkey and its people to kneel down".
Turkey's Capital Markets Board (SPK) and financial crime board have also said they would take legal steps against those who spread misinformation about financial institutions and firms, or reports that the government would seize foreign-currency deposits.
"We are together in North Atlantic Treaty Organisation and then you seek to stab your strategic partner in the back".
"We will give our answer, by shifting to new markets, new partnerships and new alliances", said Erdogan, who in recent years has built closer ties with countries in Latin America, Africa and Asia.
In addition, Erdogan also threatened the United States to "start looking for new friend and allies", if the row isn't resolved soon. But there are other factors weighing down the lira.
"You (the United States) are trying to sacrifice our strategic relations on the sole basis of a priest", said Erdogan Sunday, warning furthermore that Turkey will eventually say "farewell" to its American ally.
Finance Minister Berat Albayrak said in a Sunday interview with local media outlet Hurriyet that Ankara has a plan to save the lira without specifying details.
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Albayrak described the Lira's weakness as "an attack", echoing President Erdogan, who is his father-in-law.
He also emphasized that there was a plan in place for small to medium businesses, which he called the "real" economy.
Mr Albayrak dismissed any suggestion that Turkey might intervene in dollar-denominated bank accounts, saying any seizure or conversion of those deposits into lira was out of the question.
Erdoğan has accused the United States of stabbing Turkey in the back, the government has announced a crackdown on those on social media spreading fake news about the crisis and the central bank has eased financing requirements for Turkish banks.
"The Turkey crisis was caused by monetary policy reacting in a completely unsuitable manner".
U.S. President Donald Trump announced a punitive doubling of tariff rates on steel and aluminum products from Turkey to 50 percent and 20 percent respectively. "Turkey will never compromise on the principles of a free market economy", he said.
On Friday, Erdogan called on its citizens to convert their hard currency and gold into lira to prop up the plunging currency with a "domestic and national stance".
But the dollar fell to a low of US72.50¢ in early trade before bouncing to US72.80¢ as the Turkish lira tumbled another 13 per cent today, extending it's losses to 45 per cent so far this year, and the South African rand "flash crashed" 10 per cent at the start of trade this morning before halving losses.
Turkey has weathered several tough economic crises over the decades.
Washington earlier this month already imposed sanctions on senior Turkish officials over the Brunson case, angering Erdogan and prompting retaliatory measures by Ankara. As interest rates rise in the USA, investors pull their money out of countries that had enjoyed strong economic growth but are perceived as somewhat riskier.