turkey: The currency's weakness has been exacerbated by the increasing tendency of Turkey's president, Recep Tayyip Erdo an, to interfere in the conduct of monetary policy by opposing the use of higher interest rates to cool an overheating economy, according to The Guardian. This week's turbulence was triggered by news that the Trump administration was considering removing Turkey's eligibility for preferential trade treatment in protest at their imprisonment of the US pastor Andrew Brunson. Analysts said Turkey's central bank would have no choice but to increase borrowing costs aggressively in the coming days to stem the fall in the lira, which is down by almost a third against the US dollar in the past 12 months and hit a record low this week. The threatened loss of duty-free access to the world's biggest market for Turkish exports would further weaken the lira by removing a crucial source of dollar inflow. American officials say the charges against Brunson are false and as 10-year borrowing costs hit a record level of more than 20% on Tuesday, Ankara announced that it was sending a mission to Washington to seek a diplomatic solution to the row between the two Nato countries. Washington has already announced asset freezes and travel bans on two Turkish ministers in an attempt to secure the release of Brunson, who is facing accusations of espionage for Kurdish insurgents and the movement of Fethullah G len, a US-based preacher believed to have orchestrated a coup attempt in 2016.
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