US President Donald Trump threatened to “annihilate” the Turkish economy if the country does something he does not like in the operation Ankara plans to launch in northern Syria.
“As I said before firmly and reiterate now, if Turkey does something that, in my great and unparalleled wisdom, I consider out of bounds, I will completely destroy and annihilate Turkey’s economy (I have done it before!)”, Trump wrote on his Twitter account.
In particular, according to US President Ankara with other European countries, he must monitor captured ISIS members and their families.
“The US has done much more than anyone could have expected, including capturing 100% of the ISIS caliphate,” he tweeted.
Turkey warns that it will not give in to US threats.
This is not the first time that the US threatens Turkey with serious economic consequences, although it does not always frighten the Turkish president, Recep Tayyip Erdogan. Thus, Washington could not influence its desire to acquire Russian S-400 systems.
However, Trump has several economic levers that could help him ruin the economy of the Ottoman country.
The foreign exchange market is one of the most obvious economic levers that Washington could use to influence the Turkish economy since it has already used it with other countries.
In particular, the US can launch a media campaign against Turkey so that speculators begin to get rid of the Turkish lira, thus contributing to the collapse of their exchange rate against the dollar.
This tool can seriously influence the Turkish economy because today Turkey is a net importer of oil and to buy it needs dollars. The cheaper the lira, the more money Ankara will have to spend in order to acquire crude and, as a result, the worse its financial situation.
“The Turkish currency market is not so big. The US will not have a hard time knocking it down if the Turkish Central Bank does not take extraordinary measures,” the authors of the article writing.
Trump warns Turkey not to hurt US soldiers in Syria
Speculators are able to easily cause fluctuations in the bond market of any country while the world is going through a period of financial instability. This turbulence can cause serious economic problems to a country that borrows too many foreign resources. It is no secret that when the yield on the bonds increases, the expenses necessary to pay the debt usually increase.
“If a weakened currency is added to the problem, the general situation can turn into a real nightmare for the Turkish authorities,” Russian journalists consider.
Sanctions affecting the Turkish economy, the universal punishment of the United States
The US can also turn to its favorite weapon, the sanctions, to deal a heavy blow against Turkey’s economy. Washington has repeatedly used this method to bend to other countries.
Syrian Kurd’s ask Moscow and Damascus to defend the region from the invasion of Turkey
US Senator Lindsey Graham has already threatened Ankara from his Twitter account with sanctions, stressing that any incursion by Turkey in northern Syria will be a nightmare for the region and for US national security interests.
“Congress will react by applying severe sanctions to Turkey’s economy and the military sector at a time when we would have to work together to solve common problems,” he emphasized.
Today Turkey is the country that exports steel to the EU the most. Theoretically, the US can prohibit the countries of the European bloc from developing business with Ankara in this area. In this case, European companies may be frightened by the possibility of being affected by US sanctions and will begin to look for alternatives to Turkish steel.
Trump says the US will continue to support the Kurd’s, Following his telephone conversation with Erdogan, Trump practically gave the green light to the Turkish operation in Syria and turned his back on the Syrian Democratic Forces, who had previously enjoyed US support.
The step taken by Washington sent a signal to its allies: that the American country is not a reliable partner, although Trump has repeatedly changed his decisions.
“If the US decides to support Kurdish militias again, Ankara risks becoming bogged down in the Syrian conflict, something that implies the need to spend large financial resources. As a result, these measures will accelerate the growth of the budget deficit of the Ottoman country,” they conclude. journalists.
At the beginning of October, Erdogan reported that the US military is leaving the territories in northern Syria, where Turkey plans to launch a military operation against Kurdish forces, which it considers terrorists.
The US said it would not participate in that operation and proceeded to withdraw its troops from the northeast, no telling yet what this will do to the Turkish economy.