A general view shows the headquarters of the Lebanese Blom Bank in Beirut
Lebanese businesspeople have launched a solidarity campaign for the Turkish lira, which has recently lost ground against the dollar amid a raft of newly-imposed U.S. sanctions.
Hani Hariri of Lebanon’s Rawwad Izci Association told Anadolu Agency that his association had decided to launch a campaign in support of Turkey’s national currency, which, he said, was “under attack”.
“Through this simple campaign, we are showing our solidarity with the Turkish people against these artificial U.S. sanctions,” he said.
Ahmad al-Taish, a Lebanese businessman who recently converted thousands of dollars into Turkish Lira, told Anadolu Agency: “We are obliged to support Turkey, which has become a symbol of development and civilization in the Muslim world.”
Merchants in Lebanese capital Beirut, meanwhile, have launched a similar solidarity campaign, offering discounts to customers who make purchases in Turkish lira.
Turkey-U.S. are currently experiencing rocky relations since Washington imposed sanctions on Turkey’s interior and justice ministers last week after Ankara refused to release an American pastor who faces terrorism-related charges in Turkey.
Last Friday, U.S. President Donald Trump doubled tariffs on aluminum and steel imports from Turkey.
Banks' liquidity needs will be provided by the Central Bank of the Republic of Turkey (CBRT), the bank announced on Monday."In the framework of intraday and overnight standing facilities, the Central Bank will provide all the liquidity the banks need," the bank said in a written statement.It added: "Banks will be able to borrow foreign exchange deposits in one-month maturity in addition to one-week maturity."If needed, the Central Bank may increase lenders' current foreign exchange deposit limits -- $50 billion -- and improve utilization conditions.No deposits will be seized: Turkish FinMinTo provide banks flexibility in their collateral management, the Central Bank revised discount rates for collaterals against Turkish lira transactions, said the statement.The bank added: "Through this regulation, the discounted value of banks’ current unencumbered collaterals is projected to increase by approximately 3.8 billion Turkish liras ($555.4 million)."The Central Bank also raised foreign exchange deposit limits for lira transactions of lenders from €7.2 billion ($8.2 billion) to €20 billion ($22.8 billion).The Central Bank also lowered Turkish lira reserve requirement ratios by 250 basis points for all maturity brackets, and reserve requirement ratios for non-core FX liabilities by 400 basis points for up to three-year maturities.Russia to increase use of local currencies for tradeThe bank also announced that it will continue its intermediation in the foreign exchange deposit market."Accordingly, through the intermediation of the Central Bank, banks will be able to borrow from and lend to each other at the FX deposit market as per the rules set by the Implementation Instructions on the Foreign Exchange and Banknotes Markets," it added.It said: "Banks will continue to purchase foreign bank notes from the Central Bank via foreign exchange transactions within their pre-determined limits at the Foreign Exchange and Banknotes Markets."The bank also said that it raised the maximum average maintenance facility for foreign exchange liabilities to 8 percent."With this revision, approximately 10 billion Turkish liras ($1.46 billion), $6 billion, and $3 billion equivalent of gold liquidity will be provided to the financial system," it added.Market depth and price formations will be monitored by the Central Bank closely, which will take all necessary measures to protect financial stability, if needed, said the bank.
Turkey Central Bank to provide all liquidity banks need
Turkey’s treasury and finance minister early Monday vowed to fight “lies” that deposit money would be seized or that foreign currencies in bank accounts would be converted into Turkish liras, saying that no such steps will be taken."Deposit money will not be seized. Foreign currencies in bank accounts will not be converted into Turkish liras. However, those lies will be fought off until the end in the judicial sphere," Berat Albayrak tweeted.Albayrak said an action plan is coming into effect starting early Monday."Our institutions will take the necessary steps to relax the markets," he said.Albayrak said they prepared the plan together with banks for the real sector, the sector the most affected by recent currency fluctuations."We will take the necessary steps rapidly, together with our banks and the Banking Regulation and Supervision Agency," he added.Russia says will cut holdings of US securities amid sanctionsIran slams Trump's tariffs decision targeting TurkeyTurks sprint to support national currency after Erdoğan call
No deposits will be seized: Turkish FinMin
Turks from all walks of life have taken it upon themselves to help support their country’s national currency after President Recep Tayyip Erdoğan called on citizens to exchange their dollars and euros to Turkish lira, which experienced a sharp decrease in value following an escalating row between NATO allies Ankara and Washington. A large number of Turks launched individual initiatives aimed at encouraging their fellow citizens to support the lira.One citizen, a baker, offered free loaves of bread to anyone who exchanged their dollars, while another offered a free haircut to those who answered Erdoğan's call. Long lines formed in front of jewelers and exchange offices across Turkey as citizens flocked to sell whatever gold or dollars they have on hand to help support the ailing lira. One such citizen is Hatice Yavuz Duygu who expressed her joy to reporters after she exchanged her dollars to Turkish liras. “I’m happy, I never think or feel sad as I always put my support behind the Turkish lira,” she said.National struggle"Anyone who has dollars, euros, or gold underneath their mattresses should go to the bank and convert them into Turkish liras," Erdoğan told a rally on Friday in the northeastern Bayburt province.Erdoğan called such moves part of a "national struggle.""This will be my people's answer to those who declare economic war against us," he added. Süleyman, a trucker from the province of Kayseri, who despite not having any gold to sell or dollars to exchange, still managed to answer Erdoğan’s call by donating his truck to the government. A teller at an exchange office in Nevşehir spoke to Yeni Şafak about the large turnout of citizens who responded to the president’s call to exchange their dollars. “Especially in the last three to four days, our citizens have seriously begun to exchange their dollars. I’d say 80 percent of citizens have exchanged their dollars and euros based on what I’ve seen.”'US sanctions instigate economic war'Erdoğan: You can never bring this nation in line with the language of threats“Protect your country” “We have to protect our country,” a man from the crowd of people waiting to exchange their dollars yelled. “We have no other country. If you don’t want to become like Syria, then protect your country. The day is that of unity, not of playing politics. I, too, exchanged my foreign currency, everyone should do that no matter how much they have.”Criticizing what he called the "interest lobbies," he added that they cannot "overthrow" Turkey.Trump attacks Turkey after Erdoğan calls on TurksTrump said Friday on Twitter that he authorized the doubling of tariffs, noting that "aluminum will now be 20% and steel 50%. Our relations with Turkey are not good at this time!"He later said in a proclamation released by the White House that the additional tariffs would begin on Aug. 13.Trump's announcement came less than an hour after Erdoğan urged Turks to help defend the country against the economic war against the country.The United States, the world's biggest steel importer, imposed tariffs of 25 percent on steel and 10 percent on aluminum in March for imports from a variety of countries.Since then, its relationship with Turkey, the sixth largest steel importer to the United States, has deteriorated, prompting Ankara to send a delegation this week to Washington to meet with both the State and Treasury Departments.Last week, the United States imposed sanctions on Turkey's justice minister and interior minister for not releasing Pastor Andrew Brunson.Securing the release of evangelical Pastor Brunson, who was arrested in 2016 and faces terrorism charges in Turkey, is a top priority for the United States, and it is also tussling with Turkey over trade issues and differences over Syria.Turkey undeterred by threats: presidential aideUS tariff hike on Turkey fails to make economic sense
Turks sprint to support national currency after Erdoğan call