In typical fashion, US President Donald Trump made a hasty and surprising decision this month by imposing sanctions on two Turkish ministers.
The move – based on Trumps belief that the two ministers were responsible for the detention of US pastor Andrew Brunson, who faces terrorism-related charges in Turkey – has caused the Turkish lira to fall sharply against the dollar.
In a bid to contain the crisis, Ankara dispatched a delegation headed by the deputy Turkish foreign minister to Washington, but negotiations were fruitless. Making matters worse, Trump vowed to double steel and aluminum tariffs on Turkey, pushing the lira down even further. Since last week, the lira has lost a quarter of its value.
Turkey has close financial ties with the European Union and is considered to be a rising economic power. Exacerbation of its economic crisis will not only affect Turkey, but also reverberate globally; effects are already visible on European stock markets and the value of the euro.
It is not yet…