Turkey: Turkish lira collapses after Erdogan's decision to expel 10 ambassadors

• Turkey, Biden to Erdogan: "We want constructive relations to manage disagreements"

• Turkey, 10 Western ambassadors expelled

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25 October 2021 Erdogan on Saturday thundered against the ten ambassadors (Canada, France, Finland, Denmark, Germany, Holland, New Zealand, Norway, Sweden and the USA) who had signed the appeal for the release of activist Osman Kavala, now detained by over 1,400 days "they will learn to know and understand Turkey or they will have to leave".

But, since the Bloomberg news agency was told, diplomatic officials and advisors to the Turkish government have advised President Recep Tayyip Erdogan not to follow up on the threat to expel the 10 Western ambassadors. So now Erdogan is busy trying to find a way not to expel the ambassadors without losing face after Saturday's announcement. What is worrying above all are the repercussions on the economy and financial markets, which at the reopening this morning did not forgive the president's departure.

The Turkish lira, in fact, depreciated by more than 2% in one day, breaking through the barrier of 1 dollar for 9.80 Turkish lira and 1 euro for 11.40 lire. The negative record was recorded while, according to sources cited by the Reuters agency, a 16% cut in interest on loans by Turkish state banks is expected in line with the Central Bank's decision to lower its rates by 200 basis points of reference. Among the banks concerned there would also be Halk Bank, involved in an investigation in the US accused of having helped to create a scheme to evade the American sanctions against Iran. Yet another thud of the Turkish national currency comes just days after the downgrading of Turkey by the Financial Action Task Force,intergovernmental organization that deals with combating money laundering and terrorist financing.

"In response to the question concerning the declaration of 18 October, the United States stresses that it complies with Article 41 of the Vienna Convention on Diplomatic Relations." Thus in a note

replies to the decision of the Turkish president Erdogan to consider the American ambassador who had signed a document in favor of the liberation of the philanthropist Osman Kavala as persona non grata.

The declaration of the ambassadors maintains "respect for the laws and regulations of the receiving State" on the basis of paragraph 1 of the Vienna Convention on diplomatic relations, the US statement continues. In paragraph 2 of the same article it is established that all official affairs between countries "must be conducted through the Ministry of Foreign Affairs of the receiving State", the note continues, while on Saturday President Recep Tayyip Erdogan publicly announced his intention to expel the diplomats involved, thus without following the channels provided for by the Convention.

"The expulsion of ten ambassadors is a sign of the authoritarian drift of the Turkish government. We will not be intimidated. Freedom for Osman Kavala", writes the president of the European Parliament,

, on Twitter.

"Our ambassador has done nothing to legitimize an expulsion."

Thus the

, one of the 10 countries whose ambassadors have today been declared "persona non grata" in Turkey.