President Erdogan: Lira falls due to Trump's 'sinister plot'

US President Trump and Turkish President Erdogan at a NATO meeting in July. Photo: EPA

Mr Erdogan accused US President Donald Trump of launching “economic war against the entire world”, after the US leader escalated a diplomatic row by doubling tariffs on steel and aluminium.

“The aim of this operation is to force Türkiye to surrender in all areas, from financial to political,” the Turkish president told a gathering of supporters in the Black Sea city of Trabzon.

“We are once again facing a political, sinister plot. With God’s help, we will overcome this,” he added.

The lira has lost more than 40% of its value against the dollar this year, amid worsening Türkiye-US relations and concerns about Mr. Erdogan’s influence over the economy.

The lira's slump turned into a nosedive on August 10, when it fell 14%, causing concern in global markets.

Türkiye's currency recovered from a record low of 7.24 lira per dollar on August 13 after the central bank pledged to provide liquidity and cut reserve requirements for Turkish banks.

The move comes after Finance Minister Berat Albayrak confirmed that Turkish authorities will begin implementing the economic action plan on the morning of August 13.

Earlier, on the night of August 12, the collapse of the lira affected Asian stocks, weakened the South African rand and directed demand in the global market to safe-haven currencies including the US dollar, Swiss franc and Japanese yen.

Speaking in Trabzon, Mr. Erdogan dismissed reports that Türkiye was facing a financial crisis like the one in Asia two decades ago.

“What is the reason for making a mountain out of a molehill? There is no economic reason,” he asserted. “This is called waging a campaign against Türkiye.”

“By turning to new markets, new partnerships and new alliances, we will give an answer to the side that launched an economic war against the entire world, including our country. Some people close doors and others open new doors,” President Erdogan said.

Last week, Mr. Trump announced additional sanctions targeting Turkish metals as relations between the two countries continued to deteriorate over Ankara’s detention of an American priest.

“Our relationship with Türkiye is not good at this time,” the US president wrote on Twitter two days after talks between US and Turkish officials about Pastor Andrew Brunson ended without any tangible progress.

Father Brunson, 50, who has lived in Türkiye for the past two decades, was arrested in 2016 and charged with terrorism links. He is also accused of being involved in a failed coup attempt against Mr Erdogan last year.