According to the Financial Times, Turkish banks have been ordered not to sell the lira to any foreign counterparties.
The currency was trading 3.9 percent lower at 5.5423 per dollar as of 2:11 p.m.in Istanbul on Thursday.
Sanctions or fallout from either could not come at a worse time with Turkey's economy in recession for the first time since 2009 following a currency crisis previous year.
Erdogan said his government would rapidly start to implement structural reforms to bolster the economy after the elections against possible attacks by what he regards as speculators. He did not name the banks.
Inflation, which has been in double digits since 2017, rose to almost 25 per cent past year.
A deal to buy Russian missiles has left Turkish President Recep Tayyip Erdogan balancing North Atlantic Treaty Organisation ally the United States and new regional partner Russia as he risks fallout from both Washington and Moscow.
His unorthodox economic views have unnerved investors.
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Democratic senators Joe Manchin, Doug Jones, Kyrsten Sinema, and Angus King joined 53 Republican senators in voting "no". Ed Markey , D-Mass., failed in the Senate on Tuesday after Republicans pushed the controversial bill for a vote.
Turkish lira funding costs tumbled on Thursday from the highest level in nearly two decades after investors offloaded the nation's assets in a bid to exit currency trades they've been unable to close all week.
Berich explained that the move by the Turkish authorities has supported the currency in the short-term by completely drying up the lira's liquidity and tightening monetary policy without a formal interest rate hike, but that it has dented investor confidence in the Turkish economy in the longer term. "While they can't do this, the lira firms and the dollar falls", Erdogan said. "As interest rates are brought down, inflation will fall", CNBC cited the Turkish leader as saying.
The lira had weakened to 5.8490 on Friday before settling at 5.7625, its lowest closing value since October.
"The real problem is interest rates".
Turkey's lira collapsed past year after a diplomatic standoff with the United States led to tit-for-tat sanctions and an increase on U.S. tariffs on some Turkish products.
He said: "The psychological factor of losing the capital, losing one of the big cities in Turkey, could be perceived by voters as the beginning of the decline".
"We have an agreement with Russian Federation and we are bound by it", he said, adding pressure from other countries was against worldwide law.