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Trump imposes US sanctions on ... the accounts of Turkish ministers
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Trump imposes US sanctions on ... the accounts of Turkish ministers

created Michał SielskiSEPTEMBER 15, 2019

We have heard quite often about economic sanctions imposed on individual countries in recent years. However, this is a punishment that obviously affects their authorities, but innocent citizens also suffer to a large extent. This time, however, US President Donald Trump decided to act unconventional. He imposed sanctions on three Turkish ministers. And announces that it's not over.

The sanctions are obviously a response to the aggression of Turkish troops against Kurds. The US State Department has included Minister of Energy Fatih Donmez, Defense Hulusi Akar, and Home Affairs Suleyman Soylu. All their US accounts were frozen, and transactions were blocked. Restrictions were also placed on the Ministry of Defense and Energy. This clearly shows that the US is well aware that the Turkish government's assets are deposited in its country. Obtained legally? Let everyone answer for himself ...

USA: this is just the beginning of sanctions

The AFP agency emphasizes that the decree issued on Monday by Donald Trump opens the door to imposing further sanctions. They can affect both the whole of Turkey as a country, but politicians will rather try to hit more precisely and punish those who are personally responsible for obstructing the ceasefire in Syria. Especially that they have not only accounts in the USA but also companies and real estate.

"If the operation of Turkey continues, it will worsen the already serious and growing humanitarian crisis, which could have catastrophic consequences" Said US Secretary of State Mike Pompeo. - "To avoid further sanctions, Turkey must immediately end its unilateral offensive in Northeast Syria and resume dialogue with the United States on regional security." - emphasizes Mike Pompeo.

If this does not happen, Turkey must also take into account economic sanctions. The most painful may be the suspension of the long-running negotiations of the US-Turkey trade agreement. It is worth as much as 100 billion dollars. In addition, the US is signaling that tariffs on Turkish steel may be increased by 50 percent, which would significantly reduce interest in this product.

Trump's threats over the phone

US President Donald Trump talked on Monday by phone with Turkish President Recep Erdogan, which was reported by Washington authorities.

“The United States wants Turkey to stop the invasion, implement an immediate ceasefire and start negotiations with Kurdish forces in Syria to end the violence. The USA never gave the 'green light' to attack the Kurds " - said Vice President Mike Pence, who is going to Turkey for the remainder of the talks on the end of the Turkish offensive.

For now, the effects of these conversations are meager. Despite Donald Trump's resolve, the Turkish president has only promised that he will not launch an attack on the city of Ain al-Arab (Kurdish Kobane).

US troops still in Syria

The conflict with Poison caused the US authorities to change their plans for 1 thousand American soldiers who were about to return from Syria. The army will and will continue to fight the reviving Islamic State. Officially, the soldiers have "Monitor the situation in the region". So US soldiers will continue to be stationed on the Jordanian-Syrian border.

Where does all this fuss come from? Last week, Turkey launched military attacks in northeastern Syria against Kurdish People's Self-Defense (YPG) forces. They are democratic forces in Syria, financially supported by the West and the US. However, the Turks consider them terrorists, even though it was the YPG that defeated the Islamic State in Syria.

The Turks attacked immediately after the withdrawal of US forces from northern Syria. US President Donald Trump said he made that decision because Islamic State was defeated. As you can see, it is not only that it can turn out to be against US policy in this region.

USDTRY

Chart USD / TRY, H1 interval. Source: xNUMX XTB xStation

Throughout September, the exchange rate of the Turkish lira against the US dollar remained stable and fluctuated in the range of 5,62 - 5,79. With the escalation of the conflict, the lira depreciated and the rate strengthened to 5,93. There is more nervousness in the market, which certainly pleases speculators who like more risk, but the further fate of USD / TRY depends more on whether Trump actually implements his threats.

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About the Author
Michał Sielski
Professional journalist for over 20 years. He worked, among others, in Gazeta Wyborcza, recently associated with the largest regional portal - Trojmiasto.pl. He has been present on the financial market for 18 years, he started on the Warsaw Stock Exchange when the shares of PKN Orlen and TP SA were just being introduced to the market. Recently, his investment focus has been exclusively on the Forex market. Privately, he is a parachutist, a lover of Polish mountains and a Polish karate champion.
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