The Central Bank of the Republic of Turkey (CBRT) said in a statement Friday that it has fixed exchange rates in export rediscount credits in another step to curb the fall in Turkish lira.

"The repayments of rediscount credits extended before 25.05.18, which will be due by 31.07.18 (inc.), can be made in TL at an exchange rate of 4.20 for $, 4.90 for €, and 5.60 for £, provided that they are paid at maturity," the bank said on its official Twitter account.

It added that the exchange rate on the date of credit extension will be applicable in credit repayment, if the rate on the date of credit extension is higher than those rates.

The CBRT's move came as the lira plunged this week to record lows of 4.92 and 5.74 against the dollar and the euro, respectively. The USD/TRY rate has risen nearly 20 percent since the beginning of this year. At the beginning of the year, the USD/TRY rate was 3.78 while the average rate was 3.65 last year. On Friday it opened at around 4.8.

Deputy Prime Minister Mehmet Şimşek said Friday the country's central cank is capable of taking action against speculative attacks amid recent volatility in foreign exchange rates.

"Its hands are not tied [...] It will do what is necessary," Şimşek told a televised interview on private news channel NTV.

He also said the bank had the full support of the government, adding that the bank's decision to hike interest rates on Wednesday to support Turkish lira had shown its independence.

"Turkish Central Bank has taken a strong step that had immediate effects [on the market]," Şimşek said.

Previously on Thursday, the CBRT announced that it had increased the maximum total amount of forward foreign exchange (NDF) sale positions to $8 billion from $6.5 billion in the second quarter of 2018 in efforts to stabilize currency rates.

It also said the upper limit for the total amount of forward foreign exchange sale position was determined to be $10 billion until the end of 2018.

On Wednesday, the CBRT hiked late liquidity window interest rates, as the borrowing rate was kept at 0 percent while the lending rate was raised from 13.50 to 16.50 percent.

Turkey's economy expanded 7.4 percent last year and Erdoğan, who faces presidential and parliamentary elections next month, wants to maintain growth by encouraging spending with cheap borrowing costs through low interest rates.

However, Turkey's upcoming elections on June 24, global uncertainties topped with strong performance of the U.S. economy and Federal Reserve's expected interest rate hikes increase the risks for foreign investors in Turkish markets.