Turkey's economy suffers amid USA sanctions and tariffs

Recep Tayyip Erdogan

Also helping the currency were moves by Turkey this week to gain favor with European countries, including releasing two Greek soldiers and an Amnesty International human rights campaigner from prison.

The bail-out followed talks in Ankara between the emir of Qatar, Sheikh Tamim bin Hamad Al-Thani, and Turkey's President Recep Tayyip Erdogan.

Turkish President Tayyip Erdogan announced yesterday that the country would boycott all electronics from the USA amid tension and rising conflict between the two countries and its leaders.

Turkey on Wednesday raised tariffs on a number products imported from the United States, including passenger cars, tobacco and spirits, retaliating for President Trump's decision last week to double tariffs on Turkish metals.

"Qatar will continue to stand by its Turkish brothers as it did during the failed coup attempt in 2016", Al Shafi said, adding Qatari people purchased millions of Turkish lira to support Ankara against the "economic operation", the country is witnessing, local media reported.

On Aug. 15, a Turkish court in the Aegean province of Izmir, where Brunson is on trial, rejected the pastor's appeal to be released from house arrest.

Erdogan has repeatedly described the crisis as an "economic war" that Turkey will win.

Turkey took the action in response to what it called the Trump's administration's attack on its economy.

The currency strengthened some 2 percent against the dollar, trading at around 5.85 per dollar, hours before Treasury and Finance Minister Berat Albayrak was scheduled to update global investors about the economy.

The lira firmed as far as 5.75 against the dollar on August 15 and stood at 6.1320 at 8:43 ET in a move initially triggered by the Turkish court decision on the Greek soldiers who faced espionage charges.

The flailing Turkish lira rebounded slightly on Thursday, on the heels of Qatar's announcement that it would earmark $15 billion for deposits and investment projects to be made in Turkey.

Trade Minister Ruhsar Pekcan said the tariffs would amount to $533m.

But analysts say such measures are artificial stop-gaps and do not deal with the core issues hurting Turkey's economy - especially inflation approaching some 16 percent - which are crying out for a sharp interest rate hike.

Erdogan has warned Turkey could seek alternative partners pointing to Ankara´s strong ties with Russia, Iran and China.

The finance minister's intervention also touched on the impact of USA trade tariffs, which Trump imposed after Turkey failed to release pastor Andrew Brunson.

Earlier on Wednesday, Erdogan spoke on the phone with German Chancellor Angela Merkel, the Turkish presidency.

Ankara stood by Doha after Saudi Arabia, the United Arab Emirates and other members of the GCC severed diplomatic, trade and travel ties with Qatar a year ago.