ANKARA, Jan 4 (Reuters) - Turkish President Tayyip Erdogan called on Wednesday for banks, notably state ones, to lower interest rates and said the Turkish central bank should conduct work on this issue to bring rates down.

In a speech at the presidential palace, Erdogan repeated a call for Turks to sell foreign currency and said the exchange rate of the lira, which hit a fresh record low on Tuesday, did not reflect economic realities.

(Reporting by Orhan Coskun, Ercan Gurses, Tulay Karadeniz; Writing by Daren Butler) ((; +90-212-350 7122; Reuters Messaging: