Investors have been withdrawing their cash...
Turkish finance minister, Naci Agbal has told investors that the country's economy will ride-out short term shocks caused by last week's fail coup.
Istanbul's Borsa 100 took a 7.1% hit in the wake of Friday night's violence - the biggest fall in three years.
20,000 people have been arrested after the attempt to overthrown the country's government - including 1,500 individuals from Turkey’s finance ministry.
Goldman Sachs has warned that Turkey's lira will continue to fall over the coming months and that it is likely to sink to record lows.
Moody’s also warned yesterday that the county's credit rating could be downgraded to 'junk status,' saying, "Turkey continues to operate in a fragile financial and geopolitical environment and its external vulnerability is rising, implying the rising possibility of an escalation in capital outflows, a more rapid fall in reserves and, in a worst-case scenario, a balance of payments crisis."
Minister Agbal is a noted Erdogan loyalist, he believes that there is no need to take new measures to stimulate the Turkish economy: "If you are asking me today, there is no plan to stimulate the economy — there is no need," he said yesterday evening, these commented were reported in The Financial Times.
"In my opinion, in two or three weeks’ time, everything will be better — the investigations continue, people related to the terrorist organisation will be apprehended and until then our central bank is ready to provide any amount of money," he continued.
He argues that the economy's fundamental strengths have not been affected by the political upheaval.
President Erdogan is considering the reintroduction of the death penalty. This prospect has been universally opposed by Western leaders and would leave the country disqualified from potential EU membership.