Decline of the Turkish Lira Against the Dollar; 'A Delegation is Heading to Washington for Negotiations'

After the U.S. government announced it would review the tariff exemptions granted to Turkey, the value of the Turkish lira sharply declined against the dollar on Monday, August 15. Meanwhile, a Turkish media outlet reported on Tuesday, citing diplomatic officials, that a delegation from Turkey is heading to Washington to negotiate with U.S. officials regarding the disputes between the two countries. According to Reuters, tensions in the relations between the U.S. and Turkey, two NATO ally countries, have escalated due to disagreements over issues such as Syria and the trial of Andrew Brunson, an American pastor imprisoned in Turkey. With rising tensions between the two countries and the possibility of U.S. actions, the Turkish lira fell to its lowest level against the dollar on Monday. On Sunday, a U.S. trade representative announced that it would review Turkey's duty-free access to the U.S. market. This news raised concerns about the impact of such a move on approximately $1.7 billion worth of Turkish exports. The Turkish lira, which has lost 27% of its value since the beginning of the year, fell by 5.5% on Monday to a rate of 5.425 lira against one dollar, marking its lowest rate in the last 10 years. However, CNN Turk reported on Tuesday that Ankara and Washington have reached preliminary agreements to resolve some issues. This news outlet did not provide further details on this matter. The Turkish and U.S. governments have not yet reacted to this report. Meanwhile, the U.S. Treasury Department sanctioned Abdulhamit Gul, the Minister of Justice, and Suleyman Soylu, the Minister of Interior of Turkey, on Wednesday, August 10. The U.S. Treasury stated that these two ministers were sanctioned due to their roles in the detention of Mr. Brunson. The U.S. has described the detention of Mr. Brunson, a 50-year-old American pastor, as unjust and stated that the continuation of this detention is unacceptable. Andrew Brunson was arrested following the failed coup attempt in 2016 on charges of 'espionage' and 'terrorism' related to the Fethullah Gülen network and Kurdish insurgent groups. The charges against this American pastor, who has lived in Turkey for over two decades, could lead to a 35-year prison sentence. Mr. Brunson has denied these charges. Sarah Sanders, the White House spokesperson, emphasized on Wednesday that Mr. Brunson has committed no wrongdoing and that his detention by the Turkish government is 'unjust and unfair.' After 21 months in prison, Andrew Brunson has been placed under house arrest.