Erdogan Threatens To Abandon US Dollar In Trade With Russia

Tyler Durden's picture

The unexpectedly sharp antagonism between Turkey and the west accelerated today, and one day after NATO preemptively reminded Turkey that it is still a NATO alliance member and advising Ankara that "Turkey’s NATO membership is not in question", Turkey had some more choice words for its military allies. Cited by Reuters, Turkey foreign minister Mevlut Cavusoglu told Turkish's NTV television on Thursday that the country "may seek other options outside NATO for defense industry cooperation, although its first option is always cooperation with its NATO allies." Translation: if Russia (and/or China) gives us a better "defensive" offer, we just may take it.

The sharply worded retort came on the same day that Turkey said it will resume airstrikes on Islamic State targets in Syria, and asked Russia to carry out joint operations against its “common enemy.”  Ankara halted strikes after the downing of a Russian plane by Turkish forces last year.

In the same interview, Cavusolgu said that Ankara “will again, in an active manner, with its planes take part in operations” against Islamic State targets. Cavusolgu also said that Ankara has called on Moscow to carry out joint operations against the “common enemy” of IS. "Let's fight against the terrorist group together, so that we can clear it out as soon as possible," Cavusolgu said, adding that otherwise IS will continue to expand and spread into other countries.

To be sure, coming from the nation which directly engaged in oil trade with the Islamic State, this is at least a little ironic, however, what is notable is the significant pivot Turkey has made vis-a-vis military engagements, rotating not toward the US alliance, but toward the Kremlin.

"We will discuss all the details. We have always called on Russia to carry out anti-Daesh [IS] operations together," he said, adding that the proposal is still "on the table." The foreign minister went on to tout the benefits of closer cooperation between Turkey and Russia.

"Many countries are engaged in Syria actively. There could be mistakes," he said. "In order to prevent that, we need to put into practice the solidarity and cooperation [mechanism] between us including sharing of real-time intelligence."

The comments came just days after Turkish President Erdogan visited St. Petersburg for talks with Russian President Vladimir Putin, in the first meeting between the two leaders since the plane was downed.

But perhaps the most notable development was reported today by Turkey's Gunes newspaper, which said that as part of the discussion between Putin and Erdogan on Tuesday, the Turkish president suggested to abandon the US dollar in bilateral trade between Turkey and Russia, and instead to transact directly in lira and rubles. This would "benefit both Russia and Turkey", Erdogan allegedly said in his August 9 meeting in St Petersburg, adding that this would relieve the lira from the USD's upward pressure. The reason Erdogan is concerned about exchange rates is because recently Turkish inflation soared by nearly 8% Y/Y, and the recent devaluation of the TRY against the USD has only poured more oil on the fire.

Needless to say, such a bilateral agreement would further infuriate Turkey's European "friends", permanently halting Turkish accession into the customs union, in accordance with Austria's recent demands, and would in turn lead to a dissolution of the refugee agreement that is still keeping millions in refugees away from Europe in general and Germany, and Merkel's plunging popularity ratings, in particular. Which, incidentally, means that not only Erdogan, but now also Putin, holds key leverage over the career of Europe's most important politician.

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MFL8240's picture

Goodbye petrodollr, Obama has along with the Federal Reserve, destroyed the best country on this planet.  And he did it with the help of this courrpt media circus!

Looney's picture


This is not just “flirting with Putin”.

He’s going all in.


ParkAveFlasher's picture

Obama is revenge for Yeltsin.  Hijack the process and install a half-ass.

Here2Go's picture
Here2Go (not verified) bamawatson Aug 11, 2016 2:40 PM

Erdog to Obama: "Barry, have you ever been in a Turkish Prison?"

BaBaBouy's picture

""TURKEY Drops The USD""

Thats It ~~~ If The HildeBeast Gets In She Has Her Next WAR Target ~~~

BaBaBouy's picture

"Erdog to Obama: "Barry, have you ever been in a Turkish Prison?"

~~~ No but I've been to the Turkish Baths ...

gladih8r's picture

Soros will sacrifice a dozen puppies at some illuminati altar to keep that shit from going forward.

SWRichmond's picture

If the rumors are true, it won't be puppies.

Bokkenrijder's picture

Abandoning the Holy Dollar? Erdogan just signed his own death warrant!

beemasters's picture

"Many countries are engaged in Syria actively. There could be mistakes,"

There's no mistake. Everyone is fighting to eliminate ISIS. Only the US military, with Nato's help, is defending ISIS in Syria insisting they are "moderate rebels". PCR has also confirmed this in his recent article.

Poundsand's picture

We have all dwelved into the conspiracy of why Obama has a man crush on Erdogan.  Could the whole coup issue be a way for Turkey to decouple from the US and Nato?  Was the loss of power at the Air base and the locking down of the base a test on US responses?  Could you imagine Turkey expelling the US and forcing it to leave behind those 50 nukes?

Instant balance of power change in the ME.  Would Obama go to war to stop it?  I don't think so.  Don't believe it can't happen.

Déjà view's picture a Nuland eastern version with Greece...FU to EU...default on those loan sharks! Pucker western hubris...

gargoylian's picture
gargoylian (not verified) Déjà view Aug 11, 2016 9:53 PM

Erdogan knows the WEST is wagged by Israel. He's TIRED of it.

Warning to Erdogan:

Librarian's picture




No.  But HRC and Soros would.

BetaGap's picture

So, after all, what is the problem 'bout that?

vlad and his errDOG do not use the USD... and then?

Son of Loki's picture

Hillary is rumored to join Soros at the table for some fresh fetal meat for dinner as they scheme their next Big Lie.

wildbad's picture

well...excellent. can anyone tell me what this does not effect?

BennyBoy's picture

Abandon the US dollar?

1. USA begins telling lies about Turkey

2. USA invades Turkey (or  CIA "Moderates" overthrow Erdogan)

MANvsMACHINE's picture

It's be chicken for Thanksgiving from here on out!

Lurk Skywatcher's picture

Thats "freedom chicken" to you!

BetaGap's picture

maybe we will see a color revolution or a staged coup in turkey soon.


oh, wait...

NidStyles's picture

Turkey is a NATO member, how do they think this is going to play out? Does this mean the Tribe want's to start WW3 through the Turks?

Librarian's picture

A war for the stated purpose of preventing 50+ B61 nuclear bombs from falling into the hands of ISIS shouldn't have any problem at all clearing Congress in no more than three days.

They wouldn't even need to bother to invite the treasury secretary to come and get down on his knees.

Erdogan's play will likely be to get the US to remove all the nukes to Poland voluntarily.

In other news, many detainees in custody are killed every year. The are killed while trying to take a police weapon.

Of course, there is almost never any video record to back that up.


BarkingCat's picture

Turkey is a pretty big country. They might be goat fuckers but they are a remnant of one of the world's most powerful empires that ended only 100 years ago (with 80 million people). Not an easy place to invade.

Inside it probably not an easy place to pull the usual politicals disruptions either. 

Not for someone who is half way around the world.

...but it would be nice to see them removed from the region and shoved back into the depths of Asia.

HopefulCynic's picture SOMA San Franciso....

Kirk2NCC1701's picture

Obama to Erdo: "No, but I've been to a Turkish bath"

BlindMonkey's picture

Erdog to Obama: "Barry, have you ever been in a Turkish Prison?"


Who would have thought that Barry's "additional flexibility" after the election referred to a full ankle grab?

Idaho potato head's picture

Ahh, Thanks for a great belly laugh, I needed it.

Calmyourself's picture

I think Erdogan may soon be receiving an offer he just cannot refuse..

onthesquare's picture

Que Hiltlery  "we came, we saw, he died"  or something like that.  But this is not Kadafi.  This is a member of NATO.  He will not be so easy to burn unless all NATO heads know they are at the mercy of the USSA.  I think the world is starting to wake the fuck up.  LOL

gonetogalt's picture

They just tried that. And no, this was not Quaddif.

Blowback is a bitch...

BorisTheBlade's picture

If you like to think in terms of revenge, then Obama is a revenge for Gorbachev. Well spoken, yet ultimately clueless career partisan, at least in terms of patriots and nationalists perception. Often perceived traitor as well who abandoned good ole Soviet Union, yet no one can argue he changed USSR fundamentally. Some say for better, some say for worse.

ParkAveFlasher's picture

+1 That would make Trump "the renegade".  Oh brother! 

BorisTheBlade's picture

Trump and Yeltsin look facially somewhat similar, both blonde at the very least :) Yeltsin was a heavy drinker and Trump never having a drink is a very notable difference. That said, Yeltsin was critical of Gorbachev, so as Trump of Obama. Both Trump and Yeltsin is/was highly controversial. One notable similarity between Obama and Gorbachev is that both have/had dominating wives, Raissa Gorbacheva often made Mihail look pale by comparisson (though he loved her dearly and still does it seems). Now, all analogies are imperfect and that is all speculative in any event. History never repeats itself, but it often rhymes. One thing is certain, the tide will be turning for US posture in this world, though it will have to sink much lower first.

BarkingCat's picture

Obama is well spoken?

Apparently you have not had the pleasure of experiencing his great oratory skills when there is a teleprompter malfunction.

Nexus789's picture

I think Obomba has greatly exceeded Yeltsin's megre nation destroying achievements.

DieselChadron's picture

I smell a rat. Erdogen is not exactly trustworthy.

Chumly's picture

Maybe he's just a pawn on Putin's chess board...more coups yet to come with his apparent Mastership over this global game.

MrTouchdown's picture

It is very bad for a dictator's health to drop the dollar.

Kaiser Wilhelm II's picture

Just by looking at the smile of Putin you can guess that when he'll get everthing that he needs from Erdogan ( and Turkey ), he will cut the ties again and let him fend himself alone.

BorisTheBlade's picture

Money talks, Erdogan listens and repeats. No one trusts Aerdogan, but you can trust that him losing hundreds of millions of dollars per season from missing tourist flow from Russia and unbuilt South Stream and missing ISIS oil flow and cemented by the fact that him still being in power was due to Russian intelligence tip-off, you can gather that he is just being pragmatic and acting out of pure survival instincts. Western 'friends' have abandoned him. Now, together with Putin they will corner both Merkel and Hollande.

DieselChadron's picture

But Boris, I read that the story of Russia warning Erdogen is not true.  I read that US fighter jets joined the fight on behalf of Erdogen, eliminating Turkish helicopters involved in the coup.

Volkodav's picture

source?   "I read" do not cut it much..

full link please...

peddling-fiction's picture

Volkodav: You are very weak with links about the Scythians.

Librarian's picture

I read that US fighter jets joined the fight on behalf of Erdogen?

Member for 22 weeks...

Kyle Griffin, is that you?

Welcome, Sir.

nibiru's picture

Someone really wants to have another coup in his country. Soon we are going to hear about golden dinar instead of Turkish Lira!


Erdogan, you don't want to end like Gaddafi.

SpeakerFTD's picture

He's going down the same road traveled by Saddam Hussein and Qaddafi.

I look forward to American boots on the ground outside of Istanbul.  You know, for freedom and shit.

Calmyourself's picture

I still have not heard the B61's were flown out of Incirilik, so if they are still there I doubt boots on the ground anytime soon.  Billary and Obongo will sacrifice men all day long but the B61's are a different matter, my gosh those could even kill elites, bankers and such..