After winning a June election, Erdogan spooked markets when he tightened his control over the central bank.
The declaration comes as a trade war between the United States and Turkey has caused the Turkish currency, the lira, to plummet over the past few days, sending shockwaves throughout global markets.
The call for a boycott appears to be Erdogan's answer to the USA decision to double tariffs on Turkish steel and aluminum imports.
He said: "Erdogan has not shown any sign of backing down and going to a more orthodox policy and if things get worse with the Turkish Lira there will be an increase in non-performing loans and you are going to have a blow through to the European banking system".
The lira was around 6.55 to the dollar on Tuesday, up 6% on the previous day after the central bank freed up cash for banks, and a slight recovery from a record low of 7.23 on Sunday. The Turkish currency has lost about 40 percent of its value this year against the USA dollar.
On August 10, Trump approved a doubling of steel and aluminum tariffs on Turkey, saying Washington's ties with Ankara were "not good at this time".
Trans Candidate Wins Democratic Primary for Vermont Governor
His approval among Vermonters fell 18 points to 47 percent while his disapproval doubled to 42 percent. She is campaigning as a consistent conservative and highlighting Nicholson's history as a Democrat.
Fundamental concerns about the economy persist, however. Higher rates would slow economic growth, which he wants to egg on, but are urgently needed to support the currency and tame inflation, experts say.
How much has Turkey's currency dropped?
The finance chief, Berat Albayrak is due to address hundreds of foreign investors on Thursday in a teleconference, the state-run Anadolu Agency said. A previous appeal by Brunson was rejected at the end of July. Brunson has lived in Turkey for 23 years, but his case has been taken up as a cause for the US government.
U.S. electronics like the iPhone may be banned in Turkey after the country's president declared a boycott Tuesday.
President Donald Trump had previously announced that the U.S. was doubling steel and aluminium tariffs on Turkey, as the two North Atlantic Treaty Organisation allies row over the detention by Turkish authorities of American pastor Andrew Brunson.
"Something has to be done about interest rates", Ali Fuat Erbil, Turkiye Garanti's chief executive officer, said in an interview aired by NTV.
Pastor Andrew Brunson's lawyer had on Tuesday renewed an appeal for the clergyman's release from house arrest and for his travel ban to be lifted.
Turkey and the USA are now experiencing rocky relations following Washington's imposition of sanctions on Interior Minister Suleyman Soylu and Justice Minister Abdulhamit Gul for not releasing Brunson.