In Tuesday trading, Turkis Lira rose as much as 15%, after soaring 25% on Monday.

The gains came after Mr Erdogan pledged to compensate savers for currency moves that have eroded the value of bank deposits held in lira.

The currency had fallen to record lows as the rise in the country’s cost of living hit 21.7%.

But at one point on Tuesday, it firmed to just over 11 to the dollar before falling back slightly.

Last week, it reduced borrowing costs to from 15% to 14% on Thursday. It was the fourth cut in as many months.

Normally, central banks raise rates to combat rising prices, but Erdogan has called such tools “the mother and father of all evil”.

Under the latest measure, the government has promised to pay the difference between the value of savings in lira and equivalent dollar deposits.