Erdogan: Turkey will boycott Apple’s iPhone

The lira plunged to a fresh record low of 7.24 against the dollar during in Asia Pacific trade where markets were opening for Monday morning. Ismail Ferdous  Bloomberg

Turkish turmoil The issue between the U.S. and Turkey isn't even economic.

The threat comes during a Turkish currency crisis that has seen the lira's value collapse against the USA dollar. But they said the USA tariff hike on Turkish steel at a time of "considerable stress" tells emerging economies not to expect Washington's help to calm their markets.

The current crisis was sparked by Ankara's refusal to release pastor Andrew Brunson, who is now under house detention on terror-related charges and espionage.

The Russian foreign minister claims that the USA increased use of sanctions will erode the dollar's role as the top reserve currency.

Additionally, the lira is facing ongoing pressure with geopolitical tensions between the US and Turkey heightening after negotiations over the detention of a USA pastor in Turkey took more steps backward than forward. The argument over the pastor, Andrew Brunson, has sparked the worst crisis between the North Atlantic Treaty Organisation allies in decades and led to fears that Turkey's economic problems could cause a new global financial crisis.

"It's another Manic Monday", said Jordan Rochester, a currency strategist at Nomura International in London. He said that Russian Federation and Turkey have set a goal to switch to national currencies in mutual trade.

While Erdogan didn't address their concerns in his speech, he said Turks have already begun converting foreign exchange into Turkish lira because it would be tantamount to "surrendering" if they did otherwise. As his trial drags on, Brunson has now been held for more than 18 months, first in prison before being moved to house arrest last month, on grounds of ill health.

He said the court had up to seven days to decide.

This is the latest chapter in a growing diplomatic rift between Turkey and the United States.

Angered by the continued detention of an American pastor, the US government imposed sanctions on two Cabinet ministers and threatened more.

Brunson, 50, is being tried on espionage and terror-related charges, which he and the USA government vehemently deny.

Mr Brunson has denied charges of espionage, but faces up to 35 years in jail if found guilty. Erdogan claims that his stance against US imports is necessary due to the recent collapse in Turkish assets.

Turkish President Recep Tayyip Erdogan announced a boycott of American electronics Tuesday after US President Donald Trump's decision to hike tariffs on Turkish steel imports.

"We can only say "good-bye" to anyone who sacrifices its strategic partnership and a half century alliance with a country of 81 million for the sake of relations with terror groups", Erdogan said.

"If they have the iPhone, there is Samsung elsewhere".

The Turkish currency crisis has been affecting global financial markets.

The Union of Chambers and Commodities Exchanges of Turkey and the Turkish Industry and Business Association called on the government to cut spending, improve ties with the European Union and bring to an end the spat with the U.S. Not only would this help contain inflation but it would also help support the lira.

Turkey's troubled lira tumbled Monday to fresh record lows against the euro and dollar, piling pressure on stock markets on fears the country's crisis could spill over into the world economy.

Italy's FTSE MIB jumped 0.8 percent with banks gaining as bond yields fell after the government said it had agreed to preserve the stability of state finances and lower public debt.

Erdogan has ruled out the possibility of higher interest rates, which can slow economic growth, but independent analysts say higher rates are urgently needed to stabilise the country's currency.

The lira was around 6.55 per dollar Tuesday, up 6 percent from the previous day, when the central bank freed up cash for banks.

The currency dropped to a 13-month low as tariffs hit.

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