Erdogan condemns 'bullies' for attacks on Turkey's economy

A man shops in a market in Istanbul. Turkey's central bank announced a series of measures to free up cash for banks as the country grapples with a currency crisis. Photo / AP

Turkey's central bank announced new measures aimed at halting the rapid depreciation of the country's currency, the lira, which has been battered by worries over President Recep Tayyip Erdogan's stewardship of the economy and his escalating feud with the United States.

After the lira plummeted to a record low, the central bank said in a statement that it would "take all necessary measures to maintain financial stability" and provide banks with all the liquidity they required.

The currency recovered somewhat after the central bank's statement and a pledge by Turkey's Finance Minister to lay out an action plan to stem the lira's losses.

The currency has lost more than 40 per cent against the dollar this year, reflecting market concerns about Turkey's overheated economy, the debt exposure of its banks and companies and Erdogan's opposition to raising interest rates, which financial analysts say could help stem the currency's slide.

Turkey's worsening feud with the Trump Administration has also put pressure on the currency. The two governments have been arguing bitterly over Turkey's prosecution of Andrew Brunson, a pastor from North Carolina accused by the Turkish authorities of terrorism-related charges.

US officials have called the charges groundless and demanded that Brunson, who remains under house arrest, be allowed to return to the United States.

Following unsuccessful negotiations last week to resolve Brunson's case, President Donald Trump announced at the weekend that he was imposing new tariffs on Turkish steel and aluminum, sending the lira into free-fall.

Today, in an apparent reference to the US, Erdogan told a gathering of foreign ambassadors that "the bullies of the global system cannot roughly, shamelessly encroach on our gains that were paid for by blood," according to the Hurriyet Daily News.

"We will overturn the scenarios that target our nation," he added.

Erdogan has remained defiant throughout the crisis, portraying the lira's slide as the consequence of economic sabotage against Turkey, while urging his citizens to sell dollars and gold to support the local currency.

Turkey's Interior Ministry said that it was taking legal action against more than 300 social media accounts that had posted messages that harmed the lira, local media reported.