On Saturday,Turkish President Tayyip Erdogan dismissed central bank governor Murat Cetinkaya, causing the lira to fall 1.6% on Monday.
While no official reason has been given for the sacking, there have been reports of disagreements over interest rates.
Mr Erdogan had long called for interest rates to be lowered, describing them as the "mother and father of all evil", but Mr Cetinkaya had refused.
Now investors are concerned about the central bank's independence and how political interference will affect monetary policy.
"His removal speaks to Erdogan's insistence on imposing his diktats on monetary policy, and more broadly, it suggests tight presidential control of economic policies," said Phoenix Kalen, EM strategy director at Societe Generale.