Qatar to aid Turkey, currency rallies but US says tariffs to stay

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The United States on Wednesday ruled out removing steel tariffs that have contributed to a currency crisis in Turkey even if Ankara frees a US pastor, as Qatar pledged 15 billion US dollars in investment to Turkey.

The White House stance appeared to give Turkish authorities little incentive to work for the release of Andrew Brunson, a pastor on trial in Turkey on terrorism charges.

The dispute is one of several between the NATO allies, including diverging interests in Syria and US objections to Ankara’s ambition to buy Russian defense systems, that have contributed to instability in Turkish financial markets.

While the Brunson matter appeared far from being resolved, Turkish President Tayyip Erdogan got a shot in the arm from Qatar's Emir, who approved a package of economic projects, investments and deposits after the two met in Ankara.

The Qatari money will be channeled into banks and financial markets, a Turkish government source told Reuters.

A woman waits in line outside a Louis Vuitton store to take advantage of low prices due to the exchange rate in Istanbul, Turkey, August 14, 2018. /VCG Photo

Turkey and Qatar have traditionally maintained good ties.

Ankara stood by Doha after Saudi Arabia and other Arab states severed diplomatic, trade and travel ties with Qatar last year, accusing it of financing terrorism, a charge Doha denies.

The move by Qatar offered further support to a lira rally after the Turkish central bank tightened liquidity and curbed selling of the currency.

Meanwhile, in retaliation for American sanctions against Ankara, Turkey on Wednesday hiked tariffs on imports of several key US products, including alcoholic beverages and passenger cars.

(Cover: Turkish President Tayyip Erdogan meets with Emir of Qatar Sheikh Tamim bin Hamad al-Thani in Ankara, Turkey, August 15, 2018. /Reuters Photo)

Source(s): Reuters