Mnuchin Says Turkey Faces More Sanctions If Pastor Not Released

  • Mnuchin Says Turkey Faces More Sanctions If Pastor Not Released

Mnuchin Says Turkey Faces More Sanctions If Pastor Not Released

Turkey's finance ministry said on Friday that credit channels would remain open and that it would take measures to relieve banks and the real sector, after the Turkish lira currency crashed to a record low against the dollar earlier this week, Reuters reported. "We are two great countries that need have good relations but we will learn to respect each other", Cavusoglu added.

Treasury Secretary Steven Mnuchin suggested during a cabinet meeting on Thursday that the next spiral of tit-for-tat sanctions was coming soon, deepening a spat that has rattled financial markets, if Andrew Brunson is not released by Turkey.

Brunson is being held on terrorism charges, which he denies.

So far, the lira has lost more than 40 percent of its value against the dollar this year, sparking fears of contagion and a sell-off in emerging markets.

US President Donald Trump attacked Turkey on Friday, saying the North Atlantic Treaty Organisation ally is not a friend and had made up espionage charges against an American pastor detained in the country.

The two countries have been locked in a heated crisis emanating from unjust sanctions and the actions of Trump, as Washington levied sanctions on Interior Minister Süleyman Soylu and Justice Minister Abdulhamit Gül for not releasing Brunson. "We'll see what happens".

Turkey has the highest foreign exchange-denominated debt among emerging markets, Societe Generale said in its note on Friday, estimating its short-term external debt at $180 billion and total external debt at $460 billion. We will pay nothing for the release of an innocent man, but we are cutting back on Turkey!

The US insists the pastor, a long-time Turkish resident, is "a victim of unfair and unjust detention". Ankara also wanted Washington to hand over Turkish cleric Fethullah Gulen, who lives in Pennsylvania and who Turkey suspects of plotting the coup against Mr Erdogan. The US has refused to extradite Fethullah Gulen, who lives in Pennsylvania.

White House press secretary Sarah Huckabee Sanders earlier criticized Turkey's move to impose tariffs on some US goods as "regrettable and a step in the wrong direction".

"They should have given back a long time ago", Trump said.

Russia's Foreign Minister Sergei Lavrov, visited Ankara on Tuesday, branding the U.S. sanctions an illegitimate policy.

President Erdogan has urged Turks to shore up the currency by not trading in dollars and euros.

China said that a delegation led by its vice commerce minister would travel to the United States for talks on August 21 and 22, raising hopes that Beijing and Washington may resolve the escalating tariff war that has roiled financial markets since early March.

Turkish markets will be closed from midday on Monday for the rest of the week for the Muslim Eid al-Adha festival.

South Africa's rand weakened 1.4% and was on track for a near 6% weekly decline, while Russia's rouble and Mexico's peso also slipped.