The Turkish lira has nosedived against the dollar and other currencies in the past week, sparked by concerns over President Recep Tayyip Erdogan's economic policies and a dispute with the United States over the detention of an American pastor, who is on trial on espionage and terror-related charges.
Erdogan has ruled out an interest rate hike, which can slow economic growth, but analysts say one is urgently needed to stabilize the currency.
"There is a cost for those who are plotting the operation" against Turkey, Erdogan said in the first of two speeches in Ankara, without specifying when the boycott would start or how it would be enforced. He said Turkey was under attack, invoking the memory of the July 15, 2016 attempted coup by some military units that left almost 300 people dead.
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Trump doubled tariffs on Turkish steel and aluminum imports last week, contributing to a meltdown in the lira that threatens Turkey's banking sector and has rattled global markets.
Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., July 24, 2018.
Erdogan has so far rejected such analyses, saying the United States is the main culprit. Brunson and his supporters have firmly denied the charges.
Singling out the iPhone, he suggested Turks buy Samsung Electronics or locally made Venus Vestel smartphones instead.
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With inflation expected to run above 20%, a current account deficit that continues to widen, bond yields trading at record highs and growing political tensions with the USA, the Turkish administration have limited choices to stop the Lira from bleeding.
"We, as the Turkish Airlines, stand by our state and our people".
The current crisis was sparked by Ankara's refusal to release pastor Andrew Brunson, who is now under house detention on terror-related charges and espionage. "I believe the new and important topics will be discussed in this call, otherwise there would not be such an attempt".
But "until the crisis in Turkey is over or the market considers it to be an isolated problem, risk aversion is likely to remain elevated which will continue to benefit mainly the currency safe havens", said Antje Praefcke, a currency strategist at Commerzbank in Frankfurt. As interest rates rise in the US, investors pull their money out of countries that had enjoyed strong economic growth but are perceived as somewhat riskier.
Dollar-denominated bonds issued by selected Turkish banks continued to fall on Tuesday, although sovereign bonds steadied.
"In the absence of bad news, markets will move higher", said Steve Chiavarone, vice president and portfolio manager at Federated Investors in NY.
The US has also criticised Turkey's decision to buy S-400 surface-to-air missiles from Russian Federation, which it says are not compatible with systems used by fellow North Atlantic Treaty Organisation allies.