Fiscal discipline, free market rules permanent guidelines for Turkish economy

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The White House has said that Turkey's tariff hikes on United States products in retaliation for sanctions against Ankara were "regrettable" and again called for the immediate release of American pastor Andrew Brunson.

Markets are concerned by Erdogan's influence over the economy and his resistance to interest rate increases to tackle double-digit inflation.

President Erdogan welcomed the support, stating: "On behalf of the Turkish people, I sincerely thank Sheikh Tamim and the Qatari people for standing by Turkey".

He said: "We put sanctions on several cabinet members".

"We have more that we are planning to do if they don't release him quickly", Mnuchin said during the meeting. If the Turkish government does not eventually agree to USA demands and release him early, Brunson could spend 35 years in prison.

Standard & Poor's is scheduled to release a review of Turkey's sovereign credit rating after market close on Friday.

Turkish Finance Minister Berat Albayrak hosted a conference call with global investors on Thursday in a bid to reassure them that policymakers are able to tackle a dip in the Turkish lira.

The lira firmed as far as 5.75 against the dollar on August 15 and stood at 6.1320 at 8:43 ET in a move initially triggered by the Turkish court decision on the Greek soldiers who faced espionage charges.

Erdogan also spoke with French President Emmanuel Macron, a day after talks with German Chancellor Angela Merkel and a $15 billion pledge of support from Qatar.

U.S. retail sales rose more than expected in July as households boosted purchases of motor vehicles and clothing, suggesting the economy remained strong early in the third quarter.

Finance Minister Berat Albayrak assured global investors on Thursday that Turkey would emerge stronger from its currency crisis, insisting its banks were healthy and signaling it could ride out a dispute with the United States. But the sell-off has increased the cost of servicing that debt, particularly for companies whose revenues are exclusively in lira.

Albayrak said Turkey's banks are "healthy and strong" and that implementing structural reforms and maintaining a tight monetary policy to fight inflation remain a priority.

"If they have the iPhone, there is Samsung", the Turkish president said.

The currency had rebounded some 6 percent on Wednesday after the central bank squeezed lira liquidity in the market, effectively pushing up rates and supporting the currency.

President Erdogan has urged Turks to shore up the currency by not trading in dollars and euros.

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