Turkey’s diplomatic feuding with the United States and other allies has unnerved investors, with the lira sliding to an all-time low and circles close to the government see a foreign plot to undermine the economy.

Deputy Prime Minister Mehmet Simsek, who oversees the economy portfolio, sought to reassure jumpy investors as the lira lost more than 2% of its value against the dollar this week, saying the recent sell-off does not reflect Turkey’s strong macroeconomic underpinning. The economy has proven resilient amid previous shocks, public expenditure is declining and the economy continues to grow, he told an economic panel.

“It’s true that there are serious problems in the medium and long term. But the serious fluctuations in the Turkish market need to be clearly understood, and it’s very important to read the picture correctly in a calm manner without panicking,” Simsek said. “The problems with the United States and the European Union are temporary.” 

Investors are nervous about the impending trial of Turkish gold trader Reza Zarrab, set to begin in New York next month, on charges he violated US sanctions against Iran. Evidence could emerge that shows government ministers were complicit in a scheme to help Iran trade its gas for gold in 2012 and 2013, opposition parties contend.