Lira collapse threatens Turkish coal imports

Economically, Turkey is on the "horns of a dilemma". It can tame inflation by raising interest rates and hindering growth or it can stimulate growth with low-interest rate credit and live with high inflation. Now, a doubling of US tariffs on steel and aluminium are adding to Turkey’s woes and threatening coal imports. These economic problems have greatly weakened the Turkish lira, making imported coal an expensive commodity even as its price in US dollar terms declines. The high cost of imported coal in Turkish lira terms puts at risk a few million tonnes of metallurgical and thermal coal imports from several countries, with perhaps the greatest risk being faced by the US. Retaliatory tariffs imposed by Turkey on US coal will negate the cost advanatage of US low-cost high-sulphur coal and minimise plans to increase shipments there.