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Turkish President Recep Tayyip Erdogan arrives at the 2018 NATO Summit at NATO headquarters on July 12, 2018 in Brussels, Belgium.
Standard & Poor’s took Turkey’s rating on sovereign debt even lower on Friday.
sparking fears of a sell-off in emerging markets, especially if Turkish officials move to introduce capital controls.
The currency took a 20 percent hit last Friday after President Donald Trump announced a doubling of steel and aluminum tariffs on Ankara, in return for the country’s continued detention of American pastor Andrew Brunson.
Relations between the U.S. and Turkey took another turn for the worse this week, as the White House threatened more economic sanctions unless it hands over Brunson.
Turkey’s president Recep Tayyip Erdoğan has been criticized for not allowing the central bank enough independence to raise interest rates despite an overheating economy and inflation now exceeding 15 percent, which is well above the central bank’s target of 5 percent.