Systemic monetary problems such as high external debt and a current account deficit boiled over when the United States, a North Atlantic Treaty Organisation ally, imposed sanctions on Ankara over the continued detention of Andrew Brunson, an American pastor accused of espionage on behalf of terrorist groups.
The sanctions caused market turmoil, which the central bank attempted - but failed - to soothe with a series of market-boosting measures.
'They don't hesitate to use the economy as a weapon, ' he said.
It also creates a problem for Turkish businesses and banks that have borrowed in dollars or euros. "But without a doubt, there is a cost for those who're plotting the operation" against Turkey, he said in televised remarks from Ankara.
Why are Turkey and the United States at odds?
Turkey's lira fell sharply on Friday after U.S. President Donald Trump threatened to double tariffs in retaliation for failing to release pastor Andrew Brunson.
Turkey refused to release an American pastor who has been in detention in Turkey for almost two years now. The US has refused to extradite Fethullah Gulen, who lives in Pennsylvania.
The Turkish lira has been hit by concerns over President Recep Tayyip Erdogan's economic policies and a trade and diplomatic dispute with the United States, a North Atlantic Treaty Organisation ally.
Mr Erdogan has also been getting closer to Russian Federation.
North Atlantic Treaty Organisation uses the Incirlik Air Base in Turkey to fight against IS and there has been some domestic pressure on Mr Erdogan to close it.
What is happening to the lira?
Donald Trump's administration hit Turkey's justice and interior ministers with sanctions last week. In comparison, the Turkish lira has dropped 28% in August alone, and 45% over the year. This is due to the collapse of the lira against a strong dollar as well as inflation, which is higher than 15 percent.
If the lira's bleeding is staunched - either as a result of concrete steps introduced by the Turkish government or because investors come to believe that Turkish assets have become cheap enough to be worth buying again - then the economic fallout will ease and the global economy will move forward, albeit in a weakened state.
More than a third of Turkish banks' lending is in foreign currencies, according to Reuters.
Turkey's influential business groups have called on the government to implement tighter monetary policy to help overcome the country's currency crisis. "There has been a lot of hot money coming in on the construction sector in Turkey and a building boom", said Harry Broadman, director of the Council on Global Enterprise and Emerging Markets and senior fellow at Johns Hopkins' Foreign Policy Institute.
Still, MSCI's emerging markets index for equities.MSCIEF fell 0.27 percent to its lowest since July 2017.
What are officials doing about it?
Turkey's central bank has promised to provide banks with liquidity. Not only would this help contain inflation but it would also help support the lira.
By keeping interest rates artificially low, the Turkish government encouraged businesses to expand, and as a result borrow from overseas.
Albayrak said Tuesday Turkey would press ahead with its action plan to prop up the lira against the dollar, calling for a trade that is conducted "in our own currency".