Turkey, United States, Selene Garrett discussed on BBC Newshour
You're listening to NewsHour from the BBC World Service with, me Rebecca kes- be now Turkey's embattled. Currency the lira has hit a new record low today against the US dollar losing some eleven percent in value strains with the United States show no sign of easing a Turkish delegation returned from talks in Washington with no apparent solutions to the. Crisis in the past, hour the finance minister has been speaking about how he plans to strengthen the economy more on that in a. Moment, first, though let's get a sense of how this crisis is affecting people in. Turkey the BBC cylin Garrett reports now from a market place in. Istanbul It's early morning here. In his stumbled and the, sellers are setting up their stalls in this marketplace and. One by one they are placing, their price tags on the stalls but I have to tell you. The tax do not seem very appealing a bunch of garlic here for instance is sold for five liras and here at this stole a kilo of. Olives for twenty liras take should be solid shrimp this particular, seller tells me it would cost at. Least three liras to prepare basic bowl of salad keep your lives out of it he says otherwise it will be too expensive today Turkish lira has hit a new record low against the dollar the euro as a pound the local currency lost. Nearly a third of, its value since the beginning of the year there's a huge current-account deficit and the inflation stands above twelve percents. The, latest, loss of the value in the lira is due to the deadlock in. The talks between on Karan Washington on the release of a US Pasta currently in house. Arrest in Turkey earlier today presents are Don commented they meaning the US may have their dollars but we have our gods plummeting the lira even further Later in the. Day we expect the finance minister to announce new comic model for Turkey but the question is will. Be enough to, calm down the markets and halt the collapse of. Lira there's an overwhelming closer in amongst Turkish people. 'cause the country seeming to the. Full blown currency crisis at the, moment be also at the brink of an, economic crisis the Turkish people. Will need to be reassured The BBC's selene Garrett they're reporting in Istanbul and she actually joins. Us now on the line setting thank you for coming up because there's been a few developments on. This story in, the past few hours firstly though why is Turkey's. Currency in such poor shape at the moment While the, latest crisis has been triggered by a. Rift between Washington and Ankara over the arrest of US pastor, Andrew Branston he has been jailed since since last year and Washington, was expecting him to be released in the latest hearing but he wasn't and then sanctions imposed by Washington followed and he, was put, on house arrest there have been negotiations. And talks held between the two countries and there has been pressure put on Turkey for this passes release but Turkey wants to apparently use Mr. Bronson. As a bargaining chip, as an exchange as a prison tool for prisoner exchange. For instance and in on credit doesn't back off that is why the rift has been strengthened and deepened. And, we, have seen the lira fall to record lows all time lows Actually today there was a. Time when the Turkish lira lost fourteen percent of its value only overnight and we're talking about a currency dot already has lost nearly forty percent of its value since the beginning of the year so very serious issues at. The moment and finance minister in that report I was saying we're expecting we're expecting him to speak later today, and he has spoken and he said the independence of, the central Bank is crucial and that. Turkey will have a stronger budget discipline Turkey will emerge much, more powerful from this recent crisis but he didn't exactly clarify how. What steps would be taken exactly to halt the collapse of the lira and since he has spoken Turkish lever has plummeted, even further, well and of course President Trump has. Been applying yet more pressure he's just tweeted that he's authorizing a doubling of the tariffs on steel and aluminium with respect to Turkey that's just come in in the past hour or so what's impact with that have Well. That will hurt because aluminium and steel. Apparently will be targeting deter cash construction construction sector and the recent. Economic boom in Turkey the growth in, Turkey is very much dependent on the construction sector and if the construction sector is hurt then Turkish economy will hurt and, already because of. The fluctuation of the Turkish lira because of the loss in its value dramatic loss already there had been issues in importing of these materials and now, Turkey will face even? Harder Hard to face and already people in the marketplaces who were buying, stuff because Turkey. Has been importing materials we're already hurt they will feel the squeeze more and more and The government will need to act somehow difficult times for the Turkish thank you very. Much for joining. Us live on the line from Istanbul Celine Garrett.