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Separately, Russian Foreign Minister Sergey Lavrov, on an official visit to Ankara, said the increased USA tariffs and sanctions imposed by Washington are "based on the desire to dominate everywhere in everything, to control worldwide affairs and to achieve unilateral advantages on global markets". The currency crisis threatens to plunge the world's 18th-largest economy into a financial crisis and trigger contagion in emerging markets and Europe.

The dispute between the North Atlantic Treaty Organisation allies - brought to a new intensity by Turkey´s holding of an American pastor for two years - has raised questions over the future of their partnership and fanned fears of a looming economic crisis in Turkey. Erdogan says his country is under an economic "siege" that has nothing to do with its economic indicators.

In addition, Erdogan also threatened the United States to "start looking for new friend and allies", if the row isn't resolved soon.

USA political and economic pressures helped push Turkish over the brink, but exchange-rate related downward pressure on the lira has been going on for many months.

Erdogan won a second term in office in June under a new system of government that gives him sweeping powers.

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But the bank did not increase interest rates, which would help contain inflation while supporting the lira.

Turkey's central bank has promised to provide banks with liquidity.

In times of high uncertainty, banks tend to shy away from lending to each other. It said it would take legal measures against them but did not say what these would be.

The Turkish lira has stabilised on Tuesday morning after over a week of big losses.

The Turkish strongman also pointed out that Turkey was considering other markets and political alternatives to its "strategic partnership" with Washington. Ultra-low interest rates in the US and Europe have for years encouraged companies in Turkey to borrow in foreign currencies. Its drop of as much as 18 percent on Friday hit European and US stocks as investors fretted about banks' exposure to Turkey. The tariffs themselves are minor and impact around $1 billion (€875 million) in trade, but they weighed on market confidence in the vulnerable Turkish economy. That draws capital away from Turkey, weakening the currency.

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Erdogan said Turkey was facing an "economic siege", slamming the currency movements as an "attack against our country". He said it had readied an "action plan", without elaborating.

The U.S. Charge d'Affaires in Turkey visited Brunson on Tuesday and repeated a call for his case - and that of other U.S. nationals and consular staff - to be resolved fairly, swiftly and transparently. The United States slapped financial sanctions on two Turkish ministers and doubled steel and aluminum tariffs on Turkey over his continued detention.

Turkey's Foreign Minister Mevlut Cavusoglu speaks at the 10th Ambassadors' Conference in the capital Ankara.

Addressing a conference in Ankara gathering Turkish ambassadors, he called on Washington to "remain loyal to ties based on traditional friendship and North Atlantic Treaty Organisation alliance" with Turkey.

The Interior Ministry said it initiated legal investigations against 346 social media accounts "which posted content provoking the dollar exchange rate".

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"I say from Trabzon, we have seen your game, what they have not been able to do with provocation and coup, they are now trying to make money through money", said Recep Tayyip Erdogan.