While Turkey and the United States are at odds over a host of issues, the most pressing disagreement has been over the detention of U.S. citizens in Turkey, notably Christian pastor Andrew Brunson who is on trial on terrorism charges. But those talks on Thursday showed no signs of breakthrough. The move came as Washington was in a diplomatic standoff with Ankara over Turkey's detention of an evangelical pastor from North Carolina.
The lira tumbled about 10 per cent on Friday to another record low as investors worry about Erdogan's unorthodox economic policies and U.S. sanctions.
"The dollar can not block our path". "I would say we would define progress as Pastor Brunson being brought home", Nauert said.
"If you have dollars, euros or gold under your pillow, go to banks to exchange them for Turkish lira".More news: Everton expected to confirm loan signing of Kurt Zouma from Chelsea
The lira lost 12pc against the dollar on Friday following an escalation of the tensions between Turkey and America.
It had already fallen more than 40% in the past year. It did not disclose details, but suggests Turkey might gravitate further away from its North Atlantic Treaty Organisation allies toward cooperation with Russian Federation, whose relations with the West are at their lowest since the Cold War.
Washington imposed financial sanctions on two Turkish ministers and warned of additional measures.
Turkey's woes have been aggravated by investor worries about the economic policies of Erdogan, who won a new term in office in June with sweeping new powers. He is a self described "enemy of interest rates" and wants banks to lend cheap credit to fuel growth, something experts are anxious could seriously affect the economy.
A statement from the Kremlin said the two leaders discussed economic and trade ties.More news: Phil Thompson predicts where Liverpool FC, Man City will finish
Independent analysts argue the central bank should instead raise rates to tame inflation and support the currency.
"There is zero credibility in the Central Bank of Turkey and zero credibility in Turkish policy making". Turkish President Recep Tayyip Erdogan has described attempts to exert economic pressure on his country, including by means of destabilizing its financial system, as futile, Anadolu news agency reported on Friday.
'If they have their dollar, we have the people, we have Allah, ' he said.
"This is a domestic and national struggle".
The new set of economic steps are aimed at securing an economic growth of 3-4 percent in 2019, and decreasing the inflation rate to single digits, the ministry said in a press release on August 9.More news: Djokovic happy to beat Polansky and the clock in Toronto
The Turkish currency stood at 5.94 against the dollar at 10:00 GMT, down some seven percent, after falling as much as 14.6 percent overnight - its biggest one-day drop since early 2001.