Erdogan is very confident of God’s support, it seems. Perhaps he can say a few prayers and ask God to make it rain gold in Turkey for a few weeks?
The Turkish lira has collapsed to an all-time record low against the dollar, but the country’s leader has brushed aside concerns, telling Turks “we have our God.”
The lira hit fell more than 12 percent in value to reach more than six lira to each dollar on Friday morning. At around 5:00 ET, the currency had risen back to $5.911. As recently as April one dollar bought about four Turkish lira.
The latest bout of selling comes after a Turkish delegation returned from the United States with apparently no progress on the detention of a U.S. pastor. The evangelist, Andrew Brunson, is charged with supporting a group blamed for an attempted coup in 2016.
President Donald Trump said in July that the U.S. would place “large sanctions” on the country for the pastor’s detention.
“There are various campaigns being carried out. Don’t heed them,” Erdogan said. “Don’t forget, if they have their dollars, we have our people, our God. We are working hard. Look at what we were 16 years ago and look at us now,” Erdogan told supporters.
According to the Financial Times, the lira’s depreciation could hurt European banks such as Spain’s BBVA, Italy’s UniCredit, and France’s BNP Paribas in particular.
“Ultimately now, there is zero credibility in the Central Bank of Turkey and zero credibility in Turkish policy making. Whatever they do, the market doesn’t believe them,” Ash said.
Erdogan has snapped and lost his marbles. In another article, he started demanding Turkish citizens convert dollars, gold, and Euros into lira. He also took a page out of the Nicolas Maduro playbook and claimed he was the victim of an “economic war.” Unfortunately, dictators keep using this rhetoric so it must be effective.
Erdogan has had pretensions to become the sultan of a new Ottoman Empire. However, with his economy crashing, it’s hard for me to see how he is going to push anyone around. If he hadn’t jailed and murdered most of his opponents already, I’d say his days were numbered, but unfortunately I expect Turkey to join the long and growing list of leftist and Islamic outlaw states alongside the likes of Venezuela, Nicaragua, and Iran.
UPDATE: And right on cue, here comes President Trump taking aim at Erdogan’s jugular. Can you guys imagine wimps like Obama or Jeb! taking on someone like Erdogan this way? I sure can’t:
I have just authorized a doubling of Tariffs on Steel and Aluminum with respect to Turkey as their currency, the Turkish Lira, slides rapidly downward against our very strong Dollar! Aluminum will now be 20% and Steel 50%. Our relations with Turkey are not good at this time!
— Donald J. Trump (@realDonaldTrump) August 10, 2018
I love this president!