Albayrak's comments came as his father-in-law, President Recep Tayyip Erdogan, said he was in no mood to offer concessions to the United States in one of the worst spats between the two North Atlantic Treaty Organisation allies in years.
Experts have blamed the sharp slide in the lira on fears the country is descending into an economic crisis.
"This would be another blow for EMs as an asset class, but the wider economic spillovers should be fairly modest, even for the euro zone", he added. Contagion is also fueled by concern that fund managers who have lost heavily in Turkey or other emerging assets will look to sell more liquid parts of those portfolios to meet expected redemptions.
The lira's relentless fall turned to meltdown on Friday.
Also weighing on the materials index were shares of First Majestic Silver Corp., which fell 14.9 per cent after the miner reported a larger-than-expected loss in the second quarter.
Turkey on Monday accused the U.S. of "stabbing it in the back" as the country's economic woes failed to stop market turmoil amid a deepening diplomatic spat with Washington.
"The global financial system is so interconnected that we tend to think of them as a group and financials come under pressure", said Art Hogan, chief market strategist at B. Riley FBR in NY.
The lira's slide continued Monday, with the currency dropping as much as 10% against the United States dollar in early-morning trading before stabilizing.
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On Monday, benchmark stock indexes in Tokyo, Hong Kong and Shanghai were all down more than 1.5% in late morning trading.
Banks weren't far behind, with Commonwealth Bank down 0.6 per cent at $74.94, Westpac down 0.5 per cent at $29.41.
Other countries have also been hit to an extent, such as Indonesia and Argentina, both of which have relatively high levels of household, corporate and government debt denominated in foreign currencies. "Bond yields might start to widen and most Aussie banks borrow a fair bit from offshore". USA gold futures fell 1.52 percent to $1,200.50 an ounce.
US crude fell 0.47 percent to $67.31 per barrel and Brent was last at $72.76, down 0.07 percent on the day.
'Aluminum will now be 20 per cent and Steel 50 per cent.
Prices fell earlier in the session by more than $1 a barrel after inventories at the Cushing, Okla., delivery hub for WTI rose by about 1.7 million barrels in the week through August 10, traders said, citing data from market intelligence firm Genscape. The Canadian Syncrude processing facility has begun ramping up light oil production and was expected to return to full production in September.
There were broad declines across equities on Monday and a selloff in developing-nation currencies as the ongoing economic crisis in Turkey bled into global markets.
Traders are also bracing for spillover as Turkey's woes roil western markets.
Turkish market shares of the total Egyptian exports is about 5%, which is a very modest share, said Mohamed Abu Basha, head of macroeconomic analysis at the Cairo-based investment bank EFG-Hermes, noting that the Turkish Lira slump is a big issue, which Turkish authorities will find huge difficulties to deal with.
Kenningham noted Turkey's annual gross domestic product of around $900 billion was just 1 percent of the global economy and slightly smaller than the Netherlands.