The United States dollar and euro took an over 20% nosedive late Monday after President Recep Tayyip Erdoğan's statements in which he detailed Turkey's steps to battle high inflation and fluctuating currency rates.

The greenback fell to 12.90 against the Turkish lira while the euro fared at 14.60 as of 7:35 p.m. GMT.

"Turkey will no longer be a country dependent on imports," Erdoğan said in a statement earlier on the same day.

Speaking at a press conference after the Cabinet meeting at Ankara's Presidential Complex, the president underlined that Turkey is adamant on its new economic model that prioritizes lower interest rates, high employment numbers and more investments.

Erdoğan also emphasized that Turkey is committed to the free market economy.

"Turkey neither has any intention nor need to step back from the free market economy and exchange regime," he said.

Turkey will also continue keeping its promise of protecting the Turkish public from the high cost of living, Erdoğan also said.

No Turkish citizen will have to move their savings from the Turkish lira to a foreign currency, the president further declared.

Erdoğan also said that the Turkish government is presenting a new financial alternative for citizens' savings to soothe their worries over exchange rates-which have reached record highs in recent days.

"For exporting companies that find it difficult to present prices due to fluctuations in foreign exchange rates, they will be given an exchange rate future through the central bank," he explained.

He also said stoppage (deductions) on companies' dividend payments will also be lowered to 10%.

The state subsidy rate on the personal pension system will be raised significantly from 5% to 30% in order to boost its appeal, he underlined.

"With lower interest rates, we will see inflation go down in a couple of months," he added.

Recently, Erdoğan also said that he lowered Turkey's inflation to 4% before and pledged to do it again, as the country grapples with 21% inflation and soaring prices amid the lira's fall against the dollar.

Speaking at an event attended by African youth on Saturday, Erdoğan said the new policy model based on low-interest rates was part of an "economic independence war," which he said was continuing successfully.

"Sooner or later, just as we lowered inflation all the way to 4% when I came to power, we will lower it again, we will make it fall again," Erdoğan said.

"God willing, inflation will begin falling soon."

Inflation fell to around 4% in 2011, before beginning to gradually edge upward from 2017. It jumped 3.5% in November to 21.3% annually.

On Thursday, Erdoğan announced a 50% increase in the minimum wage that is widely expected to boost overall consumer price inflation by 3.5 to 10 percentage points.

The lira hit a record low beyond 17 against the U.S. dollar on Friday following fears of an inflationary spiral brought on by the new policy. At the low, the lira had lost some 55% of its value this year, including 37% in the last 30 days.

Erdoğan reiterated his view that interest rates cause inflation, adding he will not let Turks "be crushed" under interest rates.

Turkey has been pursuing a new economic model based on lower interest rates, which Erdoğan said will boost production, jobs, exports and growth.

Erdoğan has repeatedly defended the low-rate policy over the last three weeks as necessary to boost growth, exports and credit. The government, regulators and the banking association have all rallied around the new economic policy.

The president has called for "patience" and argued that his approach would ultimately make Turkey less dependent on outside factors such as the scale of foreign investment and the price of commodity goods.