The Turkish central bank has had negligible freedoms in setting the monetary policy in recent years as Erdogan believes interest rates are the 'mother of all evil'.
In the last six months, the benchmark S&P 500 stock market index lost 20.6 percent, which is the steepest half-yearly loss for the US stocks since 1970.
The final agreement was arrived at in a meeting of Swedish and Finnish leaders with Turkish President Recep Tayyip Erdogan ahead of Madrid Nato summit.
Military officials from countries like Israel, Saudi Arabia, Qatar, Jordan, Egypt, the U.A.E. and Bahrain participated in the meeting at Sharm El Sheikh.