Turkish lira drops amid dispute with US over Russian S-400 missile system

Washington and Ankara are at loggerheads over the deal of Turkey with Russia

The Turkish Lira dropped today after a Bloomberg report, according to which the US is considering imposing sanctions that could target Turkish defence contractors by cutting them out of the US financial credit system due to Ankara’s deal with Russia to purchase the S-400 missile systems.
Ankara and Washington have been in conflict for months over the S-400 missile systems, expected to be delivered to Turkey as early as next month. Washington has announced that this move would result in the imposition of sanctions against Turkey under the CATSAA law, which provides for measures against countries receiving military equipment from Russia.

The exchange rate of the Turkish currency stood at 5.8750 pounds against one US dollar, compared to yesterday’s closing at 5.8265 pounds. Earlier, the exchange rate had fallen to  5.950 per dollar.