Turkish finance chief tries to reassure investors on crisis
ANKARA, Turkey (AP) - Turkey's finance chief tried to reassure thousands of international investors on a conference call Thursday, in which he pledged to fix the economic troubles that have seen the country spiral into a currency crisis.
The national currency recovered somewhat from record lows hit earlier this week, a day after Qatar pledged $15 billion in investments to help Turkey's economy. The lira strengthened some 4 percent against the dollar, to around 5.75 per dollar.
Treasury and Finance Minister Berat Albayrak was quoted by private media NTV as saying the economy would emerge stronger from the turmoil.
A man sits in a currency exchange shop in Istanbul, Thursday, Aug. 16, 2018.Turkey's finance chief tried to reassure thousands of international investors on a conference call Thursday, in which he pledged to fix the economic troubles that have seen the country spiral into a currency crisis.The national currency recovered somewhat from record lows hit earlier this week. (AP Photo/Lefteris Pitarakis)
Albayrak said Turkey's banks are "healthy and strong" and that implementing structural reforms and maintain tight monetary policy to fight inflation remain a priority. The minister ruled out any move to limit money flows - which is a possibility that worries investors - or any assistance from the International Monetary Fund, NTV said.
The lira had nosedived in recent weeks, hitting a record low of 7.24 this week, as investors worried about fundamental economic problems in the country and a diplomatic and trade dispute with the United States.
Among the big concerns is that Turkey's has amassed high levels of foreign debt to fuel growth in recent years. And as the currency drops, that debt becomes so much more expensive to repay, leading to potential bankruptcies.
Also worrying investors has been President Recep Tayyip Erdogan's refusal to allow the central bank to raise interest rates to support the currency, as experts say it should. Erdogan has tightened his grip since consolidating power after general elections this year.
In his conference call, Albayrak did not appear to specify whether the central bank would be assured its independence or hint at whether rates would be allowed to rise.
Doubts about Turkey's future intensified as relations with the United States, a longtime NATO ally, soured. The U.S. imposed sanctions on two Turkish government ministers and doubled tariffs on Turkish steel and aluminum imports over the continued detention of an American pastor on espionage and terror-related charges.
Turkey retaliated with some $533 million of tariffs on some U.S. imports - including cars, tobacco and alcoholic drinks - and said it would boycott U.S. electronic goods, singling out iPhones.
The White House has complained about Turkey's treatment of Andrew Brunson, the detained American pastor. A Trump administration official said Thursday evening that the White House has told Turkey to free Brunson if it wants to cool off diplomatic and economic tensions between the two nations.
White House press secretary Sarah Huckabee Sanders earlier criticized Turkey's move to impose tariffs on some U.S. goods as "regrettable and a step in the wrong direction." She wouldn't be drawn on whether the Trump administration would respond.
President Donald Trump joined in with tweets Thursday night, urging Brunson to serve as a "great patriot hostage" while he is jailed and criticizing Turkey for "holding our wonderful Christian Pastor."
Trump added: "We will pay nothing for the release of an innocent man, but we are cutting back on Turkey!"
The Turkish currency began to recover after authorities this week took steps to help bank liquidity. 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.
Turkish officials said Erdogan spoke with French President Emmanuel Macron, during which the French president said Turkey's economic stability is important for France. Erdogan held a similar conversation with Germany's Angela Merkel on Wednesday.
Qatar said it would provide "a host of economic projects, investments and deposits" worth $15 billion to support Turkey's economy. The decision came after Qatar's emir, Sheikh Tamim bin Hamad Al Thani, met with Turkish President Recep Tayyip Erdogan in Ankara.
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Associated Press writer Zeke Miller in Washington contributed to this report.
Tourists walk by the Golden Horn in Istanbul, Thursday, Aug. 16, 2018. Beset by a weak currency and tension with the United States, Turkey is reaching out to Europe in an attempt to shore up relations with major trading partners despite years of testy rhetoric and a stalled bid for EU membership. The overtures by Turkish President Recep Tayyip Erdogan, who has harshly criticized Germany and other European nations in the past, are part of a diplomatic campaign to capitalize on international unease over U.S. President Donald Trump and American tariff disputes. (AP Photo/Lefteris Pitarakis)
Tourists enjoy the views from a high-rise building's observation deck in Istanbul, Thursday, Aug. 16, 2018. Beset by a weak currency and tension with the United States, Turkey is reaching out to Europe in an attempt to shore up relations with major trading partners despite years of testy rhetoric and a stalled bid for EU membership. The overtures by Turkish President Recep Tayyip Erdogan, who has harshly criticized Germany and other European nations in the past, are part of a diplomatic campaign to capitalize on international unease over U.S. President Donald Trump and American tariff disputes. (AP Photo/Lefteris Pitarakis)
A man checks foreign currency rates at a currency exchange shop in Istanbul, Thursday, Aug. 16, 2018. Beset by a weak currency and tension with the United States, Turkey is reaching out to Europe in an attempt to shore up relations with major trading partners despite years of testy rhetoric and a stalled bid for EU membership. The overtures by Turkish President Recep Tayyip Erdogan, who has harshly criticized Germany and other European nations in the past, are part of a diplomatic campaign to capitalize on international unease over U.S. President Donald Trump and American tariff disputes. (AP Photo/Lefteris Pitarakis)
A view of the financial and commercial Levent district, where many of Turkey's leading banks and companies have their headquarters, as seen from an observation deck on a nearby building, in Istanbul, Thursday, Aug. 16, 2018. Beset by a weak currency and tension with the United States, Turkey is reaching out to Europe in an attempt to shore up relations with major trading partners despite years of testy rhetoric and a stalled bid for EU membership. The overtures by Turkish President Recep Tayyip Erdogan, who has harshly criticized Germany and other European nations in the past, are part of a diplomatic campaign to capitalize on international unease over U.S. President Donald Trump and American tariff disputes. (AP Photo/Lefteris Pitarakis)
People walk past a street vendor offering Turkish flags for sales at a market in Istanbul, Thursday, Aug. 16, 2018. Beset by a weak currency and tension with the United States, Turkey is reaching out to Europe in an attempt to shore up relations with major trading partners despite years of testy rhetoric and a stalled bid for EU membership. The overtures by Turkish President Recep Tayyip Erdogan, who has harshly criticized Germany and other European nations in the past, are part of a diplomatic campaign to capitalize on international unease over U.S. President Donald Trump and American tariff disputes. (AP Photo/Lefteris Pitarakis)
Emine Erdogan, wife of Turkey's President Recep Tayyip Erdogan, addresses the wives of Turkish ambassadors, in Ankara, Turkey, Thursday, Aug. 16, 2018. Turkey's Treasury and Finance Minister Berat Albayrak, son-in-law of Erdogan, tried to reassure thousands of international investors on a conference call Thursday, in which he pledged to fix the economic troubles that have seen the country spiral into a currency crisis.(Presidential Press Service via AP, Pool)
A general view of Istanbul, Thursday, Aug. 16, 2018. Turkey's finance chief tried to reassure thousands of international investors on a conference call Thursday, in which he pledged to fix the economic troubles that have seen the country spiral into a currency crisis.The national currency recovered somewhat from record lows hit earlier this week. (AP Photo/Lefteris Pitarakis)
A street vendor offers Turkish flags for sale at a market in Istanbul, Thursday, Aug. 16, 2018.Turkey's finance chief tried to reassure thousands of international investors on a conference call Thursday, in which he pledged to fix the economic troubles that have seen the country spiral into a currency crisis.The national currency recovered somewhat from record lows hit earlier this week. (AP Photo/Lefteris Pitarakis)
A currency exchange shop worker waits for customers in Istanbul, Thursday, Aug. 16, 2018.Turkey's finance chief tried to reassure thousands of international investors on a conference call Thursday, in which he pledged to fix the economic troubles that have seen the country spiral into a currency crisis.The national currency recovered somewhat from record lows hit earlier this week. (AP Photo/Lefteris Pitarakis)
A poster of Turkey's President Recep Tayyip Erdogan decorates a building in Istanbul, Thursday, Aug. 16, 2018. Turkey's finance chief tried to reassure thousands of international investors on a conference call Thursday, in which he pledged to fix the economic troubles that have seen the country spiral into a currency crisis.The national currency recovered somewhat from record lows hit earlier this week. (AP Photo/Lefteris Pitarakis)
A man walks away after changing currency at a currency exchange shop in Istanbul, Thursday, Aug. 16, 2018.Turkey's finance chief tried to reassure thousands of international investors on a conference call Thursday, in which he pledged to fix the economic troubles that have seen the country spiral into a currency crisis.The national currency recovered somewhat from record lows hit earlier this week. (AP Photo/Lefteris Pitarakis)
A view of the financial and commercial Levent district, where many of Turkey's leading banks and companies have their headquarters, as seen from an observation deck on a nearby building, in Istanbul, Thursday, Aug. 16, 2018. Turkey's finance chief tried to reassure thousands of international investors on a conference call Thursday, in which he pledged to fix the economic troubles that have seen the country spiral into a currency crisis.The national currency recovered somewhat from record lows hit earlier this week. (AP Photo/Lefteris Pitarakis)
A man uses his mobile as he sits in a currency exchange shop in Istanbul, Thursday, Aug. 16, 2018.Turkey's finance chief tried to reassure thousands of international investors on a conference call Thursday, in which he pledged to fix the economic troubles that have seen the country spiral into a currency crisis.The national currency recovered somewhat from record lows hit earlier this week. (AP Photo/Lefteris Pitarakis)
A tourist takes pictures of the financial and commercial Levent district, where many of Turkey's leading banks and companies have their headquarters, from an observation deck on a nearby building, in Istanbul, Thursday, Aug. 16, 2018. Turkey's finance chief tried to reassure thousands of international investors on a conference call Thursday, in which he pledged to fix the economic troubles that have seen the country spiral into a currency crisis.The national currency recovered somewhat from record lows hit earlier this week. (AP Photo/Lefteris Pitarakis)
People walk past a street vendor offering Turkish flags for sale, at a market in Istanbul, Thursday, Aug. 16, 2018.Turkey's finance chief tried to reassure thousands of international investors on a conference call Thursday, in which he pledged to fix the economic troubles that have seen the country spiral into a currency crisis.The national currency recovered somewhat from record lows hit earlier this week. (AP Photo/Lefteris Pitarakis)
Tourists enjoy the views from a high-rise building's observation deck in Istanbul, Thursday, Aug. 16, 2018. Turkey's finance chief tried to reassure thousands of international investors on a conference call Thursday, in which he pledged to fix the economic troubles that have seen the country spiral into a currency crisis.The national currency recovered somewhat from record lows hit earlier this week. (AP Photo/Lefteris Pitarakis)
A general view of Istanbul's financial and commercial Levent district, where many of Turkey's leading banks and companies have their headquarters, Thursday, Aug. 16, 2018. Turkey's finance chief tried to reassure thousands of international investors on a conference call Thursday, in which he pledged to fix the economic troubles that have seen the country spiral into a currency crisis.The national currency recovered somewhat from record lows hit earlier this week. (AP Photo/Lefteris Pitarakis)
This Thursday, Aug 16. 2018, image shows an Associated Press graphic. Investors have been pulling out of Turkey's markets, sending its stock market and currency plunging. That's making debt that Turkish companies owe in dollar terms even more expensive to pay back, which only further weakens the country's financial system. (AP Graphic)
This Thursday, Aug 16. 2018, image shows an Associated Press graphic. Investors have been pulling out of Turkey's markets, sending its stock market and currency plunging. That's making debt that Turkish companies owe in dollar terms even more expensive to pay back, which only further weakens the country's financial system. (AP Graphic)
This Thursday, Aug 16. 2018, image shows an Associated Press graphic. Investors have been pulling out of Turkey's markets, sending its stock market and currency plunging. That's making debt that Turkish companies owe in dollar terms even more expensive to pay back, which only further weakens the country's financial system. (AP Graphic)
This Thursday, Aug 16. 2018, image shows an Associated Press graphic. A financial crisis that began in 1997 after Thailand devalued its currency eventually sent markets reeling across the region in what became known as the Asian financial crisis. (AP Graphic)
A man uses his mobile as he sits in a currency exchange shop in Istanbul, Thursday, Aug. 16, 2018. Beset by a weak currency and tension with the United States, Turkey is reaching out to Europe in an attempt to shore up relations with major trading partners despite years of testy rhetoric and a stalled bid for EU membership. The overtures by Turkish President Recep Tayyip Erdogan, who has harshly criticized Germany and other European nations in the past, are part of a diplomatic campaign to capitalize on international unease over U.S. President Donald Trump and American tariff disputes. (AP Photo/Lefteris Pitarakis)
