Turkey's Currency Collapse; Erdogan Urges Citizens to Convert Gold, Euros, and Dollars to Lira

After the United States announced it would double tariffs on imported steel and aluminum from Turkey, the collapse of the lira against the dollar intensified. Turkish President Recep Tayyip Erdogan on Friday urged the people of the country to convert their gold and dollars into lira. Reuters reports that the lira has fallen 40% against the dollar this year, but on Friday it even dropped by 18% in a single day, marking an unprecedented decline since 2001. Erdogan stated, 'Those who have dollars, euros, and gold at home should take them to the banks and convert them to lira. This is a national struggle.' The Turkish President claimed that such an action would be a 'strong response' to those who have attacked the 'economy of the country.' Meanwhile, Donald Trump, the President of the United States, tweeted on Friday: 'I authorized doubling the tariffs on steel and aluminum imports from Turkey, while their currency, the lira, is rapidly losing value against our very strong dollar.' The U.S. President added that the tariff on aluminum imports from Turkey is now 20% and on steel is 50%. 'Our relationship with Turkey is not good at this time.' Reuters notes that Turkey, as a long-standing Western ally, shares borders with Iran, Iraq, and Syria, and any economic crisis in the country could increase instability in the region. Erdogan, without naming a specific country, stated on Friday that countries that supported the failed coup in Turkey are now attacking Turkey from other directions. The Turkish President has previously accused Western countries, particularly General Joseph Votel, head of the U.S. Central Command in the Middle East, of supporting the failed coup in Turkey. Meanwhile, Turkey's Ministry of Trade responded to Trump's order by stating that the U.S. government's action to increase tariffs on steel and aluminum imports from Turkey is contrary to World Trade Organization principles. In recent weeks, the trial of Andrew Brunson, a 50-year-old American pastor, has heightened tensions between the two countries. The U.S. has called Brunson's trial unfair and stated that the continuation of his detention is unacceptable. The U.S. has sanctioned Abdulhamit Gul, Turkey's Minister of Justice, and Suleyman Soylu, the Interior Minister, for their roles in Brunson's detention. The Turkish Foreign Ministry deemed Washington's decision 'hostile' and stated it would retaliate. Andrew Brunson was arrested following the failed coup in 2016 on charges of 'espionage' and 'terrorism' related to connections with the Fethullah Gülen network and Kurdish insurgent groups. The Turkish government has repeatedly asked the U.S. to extradite Gülen, an exiled cleric in the U.S., whom it accuses of leading the failed coup in 2016. Gülen has denied the accusations, and U.S. officials have stated that Brunson's extradition requires providing documented evidence to the judicial authorities in the country.