Turkey seeks worldwide support for the Lira


"This is a typical "flight to quality" move from foreign investors out of emerging markets to safer, developed countries", Agathe Demarais, lead Turkey analyst at the Economist Intelligence Unit, told AFP.

In an interview with Hurriyet newspaper published online, Albayrak described the lira's weakness as "an attack", echoing President Tayyip Erdogan - who is his father-in-law - but he said Turkey's action plan was ready.

Meanwhile, Atlantic Council Middle East expert, Aaron Stein, claims Erdogan might have made an error in overestimating his importance to President Trump, adding that if Turkey denied the United States access to the Incirlik military base, with which the USA has strategic interests, such a move would invoke the wrath of NATO allies.

U.S. President Donald Trump has demanded the pastor's release and said he had authorized the doubling of tariffs on steel and aluminum imports from Turkey.

TRT World's Rahul Radhakrishnan has more. "In view of the domestic political and economic conditions, it is therefore unclear whether the necessary steps will be taken to contain the market fallout". "What do you want to do?" The freefall has been exacerbated by latest USA threat to double tariffs on Turkish steel and aluminum.

The American Center for Law and Justice (ACLJ) says that the charges are not legitimate and that Brunson was arrested primarily because of his Christian faith.

TRT World's Andrew Hopkins speaks from the conference in Ankara.

He added that "Turkey is under siege".

"On the one hand you are going to be a strategic partner and on the other hand you put a bullet into your strategic partner", Erdogan said.

The US last week imposed sanctions on Turkey over its refusal to extradite a US preacher imprisoned in the country.

The Post Office said sales of lira in the past week were three times higher than a year ago.

Investors are anxious about a confluence of factors including Turkey's reliance on foreign loans, which become more hard to repay when the country's currency is plunging.

A rise in interest rates is still on the cards, analysts say, as could be a possible loan from the International Monetary Fund to tide Ankara over, just like Argentina recently negotiated a $50 billion loan with the IMF to stem the decline of the peso which fell 35 percent between April and June.

Investors have grown increasingly concerned about President Tayyip Erdogan's growing control over the economy and a deepening diplomatic rift with the United States, with the concerns snowballing into a market panic last week.

He added that Turkey would continue its "constructive engagement". But most of those reports are done, and Sandven, of US Bank, said stocks may spend the next two months wavering.

Saying that the USA is going through a "strategic confusion" due to its domestic politics, Cavusoglu called its North Atlantic Treaty Organisation ally to realise "each of us matters".

His government is locked in a bitter dispute with the United States over Turkey's prosecution of Brunson, a pastor from North Carolina.

Brunson is also accused of spying for political and military ends.

Erdogan gave assurances that the exchange rates would return to "reasonable levels soon".

Turkey scrambled a delegation to Washington last week to stave off the crisis but no deal has been reached.

Relations between the United States and Turkey had plunged to their lowest in decades following unprecedented sanctions declared by the United States on Turkey over US pastor Andrew Brunson, who faces terrorism charges and up to 35 years in prison if found guilty.