US President Donald Trump’s tariffs on Turkish steel and aluminum have had a dramatic effect, with the Turkish lira dropping up to 18%.
Turkish President Tayyip Erdogan hit back at Mr Trump, saying the tariffs were against World Trade Organisation rules.
Mr Erdogan urged Turkish people to sell their gold and US dollars in a bid to bolster the rapidly declining currency.
“Change the euros, the dollars and the gold that you are keeping beneath your pillows into lira at our banks. This is a domestic and national struggle.”
Mr Trump announced the tariffs on Friday, with the White House claiming they were authorised on national security grounds.
“I have just authorized a doubling of Tariffs on Steel and Aluminum with respect to Turkey as their currency, the Turkish Lira, slides rapidly downward against our very strong Dollar!,” Mr Trump tweeted.
“Aluminum (sic) will now be 20% and Steel 50%. Our relations with Turkey are not good at this time!”
Turkey is facing increasing economic pressure with the value of the lira dropping 41% so far this year, as the country feels the international repercussions from concern over Mr Erdogan’s push to centralise power in his office, and souring of relations with key allies such as the US.