Turkey Lira crisis in pictures: Locals sell wealth to save currency

Turkey exported $1.04 billion (€0.91 billion) worth of steel and $60 billion worth of aluminum to the United States in 2017, according to the Hurriyet newspaper.

Germany's exporter-heavy DAX .GDAXI index fell 2 percent, underperforming the broader market, while Milan was the hardest-hit major European index and lost 2.5 percent, its lowest level since July previous year.

The Russian economy has for four years been hurt by the effects of sanctions imposed on the country in response to its annexation of Crimea and intervention in Ukraine.

But analysts say that while there may be losses at some banks, Turkey's economic problems do not pose a big threat to Europe or other big economies like the United States.

Then there are Turkey's worsening relations with the US.

Turkey later warned the United States that sanctions and pressure would only serve to harm ties between the two North Atlantic Treaty Organisation allies, adding Ankara would continue to retaliate as necessary against USA tariffs.

"This innocent man of faith should be released immediately", Trump previously wrote on Twitter when it became clear Turkey would not release the evangelist, who was ordered to be held under house arrest. The ruble has lost 17% of its value against the dollar this year. The currency has fallen 66 per cent since the start of the year, pushing up the cost of goods for Turkish people and shaking global investors' confidence in the country.

FILE PHOTO: A money changer counts Turkish lira bills at an currency exchange office in central Istanbul, Turkey, August 21, 2015.

The currency has fallen more than 35 percent this year after losing almost a quarter of its value in 2017.

His characteristic defiance has further unnerved investors. He has urged the central bank to not raise interest rates. Inflation increased 16 percent in July, and Erdogan has insisted that interest rates not increase.

Erdogan's decision to name his son-in-law as finance minister also made people wonder about the direction of the country's economic policy.

A favourable exchange rate though can't have harmed the situation: on Friday, the U.S. dollar would buy nearly six Turkish lira; at the end of January, it would have got you less than four.

The Turkish president on Friday dismissed such concerns and called for people to defend the currency.

"A US-induced crisis in Turkey will create a new martyr in the region, with far-reaching consequences which American congressmen and President Trump do not foresee", Bulent Gultekin, a professor at the Wharton School of the University of Pennsylvania and the former Turkish Central Bank governor, told MEE. Summer vacations in Europe and the US means lower liquidity that can compound movements in currencies.

Aksoy said sanctions would only damage the relationship which has withstood the trials of time.

Turkey has accused Andrew Craig Brunson of spying and "committing crimes on behalf of terror groups without being a member".

Turkey remains at loggerheads with the United States in one of the worst spats between two North Atlantic Treaty Organisation allies in years over the detention of American pastor Andrew Brunson and a host of other issues.

According to the Washington Post, Mr Trump and Mr Erdogan agreed on a deal that would release Mr Brunson and, in exchange, Turkish national Ebru Ozkhan would be released by Israel.

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