Turkey's lira pulled back an overnight record low of 7.24 against the dollar on Monday
after the central bank said it would provide liquidity,
It also pledged to cut lira and foreign currency reserve requirements for Turkish banks.
And the country's Finance Minister said authorities would start implementing an economic action plan.
(SOUNDBITE) (English) CHIEF MARKET STRATEGIST WH IRELAND, MIKE INGRAM, SAYING:
"I very much doubt that what's been announced in Turkey at the moment is going to be sufficient to stabilise certainly the Turkish lira which has been the focal point for most investors. I think the basic problem as I keep coming back to is that under Erdogan the economic institutions have been largely hollowed out."
The central bank said it will free up $6 billion of gold liquidity in the financial system.
That helped the lira strengthen to 6.4 before it dropped again to 6.92.
The lira's record lows means an uncertain future for Turkish business and consumers....
(SOUNDBITE) (Turkish) TRADESMAN, OKAN GUNEY, SAYING:
"I sell imported goods so we will up our prices today because what we pay for goods has increased 20 percent due to the currency fluctuation. Eventually, people will be affected by that."
President Erdogan's influence over the central bank is also hitting investor confidence.
(SOUNDBITE) (English) ING-DIBA'S CHIEF ECONOMIST CARSTEN BRZESKI, SAYING:
"The fall of the Turkish lira is only the beginning of a real economic crisis, of a possible recession in Turkey. We would need to see a complete change in economic policies. President Erdogan would have to really bring back or to return confidence that the central bank is independent, that the central bank's sole goal is to fight inflation and this would also mean higher interest rates in Turkey."
But Erdogan is opposed to interest rates hikes,
and few expect the new economic plan to solve all of Turkey's current problems.